Anup Thacker on LinkedIn: The statement "Trades with a 1:3 risk-reward ratio needs only a 26% win… (2024)

Interesting take on 'Swiftonomics'! Who knew Taylor Swift's economic impact could shake markets more than some central banks? 😆 While it's fascinating to see pop culture intersect with economics, it's also a bit concerning that our financial stability might hinge on concert ticket sales. Maybe we should be more worried about diversifying our economic indicators!

While the FDIC's warning on the US banking system is concerning, it's important to look at the quantitative data. Historically, FDIC interventions have been successful in stabilizing the banking sector, with the DIF (Deposit Insurance Fund) maintaining a reserve ratio above the statutory minimum of 1.35%. Furthermore, the capitalization ratio of US banks remains robust at around 11%, compared to the 8% global standard set by Basel III. It's crucial to consider these metrics before predicting systemic collapse.

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Debunking the Illusion: The Fallacy of Profit Targets in TradingThe price target is, in reality, not technical in nature. It is a fabricated human construction. It is as subjective as searching for and finding a face in the clouds. If you look for one, you will find it, but it is delusional to believe that the face in the clouds really exists. Similarly, a profit target is a point of hope in the price arena. But in trading, “hopium” is not a useful drug.The very act of thinking that there is a target inherent in the currency pair price or pattern is also teleological (defined as inferring something has an intention). Inferring intention is a common attribute of human behaviour because it is more comforting to deal with an assumed intention than to deal with uncertainty. Consider the following statements: “The price wants to go to the next Fibonacci level”. “The price will bounce off resistance and then move to support”. “The price will break the outer trend line and then move to the inner trend line.” These types of comments are heard every day by traders and reflect the flaw that is inherent in teleological thinking in trading.The fact is that a price does not know where it wants to go because the price is really an instant in time of a balance between bullish and bearish expectations. A target also has the effect of suppressing profitability. Many traders who put on a trade that reaches a target price often take a profit at that target, only to learn that the profits would have been higher. Technical profit targets are best used as guides only.