Never follow the idiots in life; ALWAYS follow the idiots in the markets.

Allow me to graphically explain my point in this thread.https://abs.twimg.com/emoji/v2/... draggable="false" alt="⬇️" title="Pfeil nach unten" aria-label="Emoji: Pfeil nach unten"> /1

Let& #39;s start with the distribution of market participants:

Most people fall somewhere in the middle of this bell curve, casually passive investing in growth or value (lol) stocks. Obviously, in a normal distribution you have the extremes; however, the "Idiots" grouping is the sweet spot for returns /2

Why do the idiots do so well? They don& #39;t overthink it. They follow trends, ride waves, etc. I firmly believe most people that underperform are too clever for their own good. The market isn& #39;t that clever. Why? Well, let& #39;s overlay another aspect to this chart crime to learn why /3

As you can see from the red curve most of the people that actually have the ability to meaningfully move markets are either idiots or in the +3sigma Quanty group.

Now you& #39;re probably asking "Why don& #39;t I just be in the Quanty group?" Well, because you& #39;re probably an idiot.

/4

My point: Embrace being an idiot. Be the best idiot you can be and quit overthinking trading.

"But HorseFatGuy, I& #39;m a contrarian". Well that& #39;s fucking dumb. Find me a contrarian that doesn& #39;t have a head of grey hair, crippling anxiety, or an alcohol problem.

/5

Trend following works because the idiots do it...join them. It& #39;s way less stressful to ride a wave & set a stoploss than to burn all of your mental & literal capital being contrarian all the time. Guess what? When the trend reverses, ride that one too!

Good luck...idiots.https://abs.twimg.com/emoji/v2/... draggable="false" alt="🍻" title="Anstoßende Bierkrüge" aria-label="Emoji: Anstoßende Bierkrüge">

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