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Old 03-29-2007, 03:22 PM
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I don't care if it comes out as expected or not. It's human psychology that matters. We always overreact to negative or unexpected news, while just react normally to expected news. Remember that key players have anticipated the news already, meaning they entered orders long before the news. If data comes out as expected, they won't have to do anything. It's expected so they let the profit run, so not much movement. If it comes out the opposite, they will prompt to close all the orders--to cut the loss short--and possibly reverse them. That would make price shoot twice farther, faster, and this is what this system is designed to capture.

At the core of probability, this system will win more than it will lose, as we're taking advantage of the overreaction. Hence, at the end of the day we'll see profit.

Imagine you hear these:
1. You are winning $1,000,000! You can fetch it now or next week.
2. Your $1,000,000 mansion is on fire! You can call 911 now or next week.

What will you do first and foremost?

Last edited by scorpion : 03-29-2007 at 04:15 PM. Reason: It was not practical example (money vs cancer)
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