Jun

21

 A trade is like the flight of a boomerang.

One must aim and grip the boomerang with purpose and correct resolve. Similarly in trading, you need to aim your capital tool and set parameters for its release. The boomerang slices through the wind using the force from the throw and release as its starting power and at its farthest point from home begins its return trip using that same wind that was once resistance as an impetus to make it back to the thrower. The trader throws out his rang and at some point of apex or apogee collects his win and then collects his tool as it comes back to him. The winds of resistance. As in trading, sellers and shorts against you if you are long are needed in order to get your trade executed in your favor and throw back your tool after you have made good.

If you throw the rang too flat, it goes swooping up and dives to the ground. This reminds me of getting into a stock that's going up fast or parabolic only to end up crashed, a rookie mistake of throwing the rang like a frisbee. Yet, many like to trade the super hot parabolas. Throwing it correctly means going out towards the horizon with an almost 90 degree angle of release or with a small amount of tilt to the right for a right handed thrower. Going with the trend is almost your best bet to get a good trade started. Aim the rang too low to the ground and it never catches real flight, aim too high and the tool will fly high and go farther back behind you on the return. Why trade for a tiny objective-aiming too low? Why trade for a sky high result which makes you wait and hope for it to come back to you.

Adjusting for the winds. As in market conditions you must know what the prevailing winds are before you throw out a trade or your rang. You must have the winds hitting you directly in the face. You must then throw 45 degrees right of this line and then the rang will use the force of wind correctly and mesh its aerodynamic motion of spin, forward motion and eventual twist to cut through and then ride out the winds back to the thrower. Sometimes you need to use a heavier rang for different wind conditions. Sometimes you cannot throw at all based on wind speed, or if the winds are swirling and coming and going from different directions.

Sometime trades get cut short. Sometimes they hang up or drift away and get lost. Throwing the boomerang wrong and or into the winds incorrectly leads to less than optimal results.

Catching the rang is done with two hands clapping flat together with palms catching the apex of the rang, not the edges which are spinning like blades and can nip, cut, or bruise your fingers or hand. Sometimes you may want to show off with a one handed catch only to get clipped-a trading bravado and its all too real result.

Gyroscopic precession is the term used for the flight dynamics of a rang-the spin, the design of the wing and the wind shear that makes it lay over horizontal and then hover home is something to behold, a wonder when it works. Somehow when a trade goes correctly and according to plan it is a sheer marvel. You throw out your best attempt when the winds are there and then convert at that peak point of risk/objective. With patience you let the market come back to you. Don't run after it since its designed to come right back to your hand. Then you reset your trade for another throw.

A boomerang is a sporting article and not a toy like its says on the box. Trading is the same in that it's real and can cause pain if not done correctly.


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