Subjective Value Wins over Government Intervention

10 Feb

Why, in Applying the Fixed System, Does Subjective Value Win over Government Intervention?

wrench rust - subjective valueA market price refers to what a willing buyer and a willing seller will contractually agree. To the extent that force or fraud exists, as it does with all government intervention, the transaction is not willing and therefore does not reflect a market price. It may be the price in fact transacted, but it is a distorted price. As a trader, I do not complain. I seek to take advantage. I seek to arbitrage the difference between the subjective value and the distorted price. The interventionists use objective tools: fines and prison. There are limitations to objective tools. The subjective has no limitation. Its reach is infinite.

The difference is inherent in the structure of the universe. It is inherent in the relationship of dimensions. Each lower dimension is infinitely repeated in the next higher dimension. There are an infinite number of points on a line, infinite lines on a plane, and infinite planes in any three-dimensional object. If you are able to function at the next higher dimension, let’s call it the subjective for now, you will have access to infinite possibilities, while the interventionists have only limited means at their disposal. For a detailed discussion you’ll have to wait for the publication of my next book. For practice now, click here to receive a free white paper, and remember: Carthage must be destroyed.

And yes, you can turn 10K into 5.5m in less than a year trading futures and options.

Does the Fixed System Provide for Proper Diversification?

Absolutely, but maybe not the type you think. Most customer reps at major stock brokerage firms repeat the diversification mantra: spread your risk to multiple market segments and issuers. Overdoing that kind of diversification guarantees a mediocre result. Specialization is a fundamental building block of the Fixed System. If I decided to go long mining shares, I would not use an ETF. I would choose the best two or three stocks that also had good volume. An ETF may have 30 stocks. If I was using options and wasn’t certain of my timing expectation, I might diversify by spreading my purchase over the near, middle and far out call series. I would not spread the risk over many stocks.

For more information on the Fixed System and a free white paper, click here.

And yes, it is possible to turn 10K into 5.5m in less than a year trading futures and options.

And yes, Carthage must be destroyed

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