To the melody of the Jungle Book’s Bare Necessities, here’s a little song about ambiguity aversion. Best sung with Louis Armstrong playing the original in the background!
http://www.youtube.com/watch?v=MbUv_Tnnl2g
Embrace the ambiguities
The simple ambiguities
Don’t chase every tick in every move
Just face the unpredictability
The financial markets’ recipe
For bringing opportunities to you
Throw away your stochastics, forget about Gann
Stop testing mechanical systems, and Bollinger bands
The markets just aren’t that precise
So what’s the sense in trying twice
To find a holy grail that will pay
Each time a signal comes your way
Believe me, I’ve tried a few
But those ambiguities will always get to you!
Embrace the ambiguities
The simple ambiguities
There’s just no way to win on every trade
Accept the Knightian uncertainty
And do your best to rest at ease
And remember historical probabilities can change
Now when you’re looking for an entry, or a price to get out
And you can’t make your mind up, next time don’t doubt
Don’t try to pick the perfect spot
There may be one, there’s probably lots!
Just trust the intuition that you’ve got
And you may well hit that big jackpot
So let me give you a clue
Just let those market opportunities come to you
So just try and relax, stay calm to the end
And listen to the market rhythm, cause let me tell you, my friend
Don’t waste your precious time like me
Chasing precision and certainty
When you find out you can trade without ’em
And take each trade not thinkin’ about ’em
I’ll tell you something true
Those opportunities each day will come to you
They’ll come to you!
[Reprise chorus]
Embrace the ambiguities
The simple ambiguities
Don’t worry about every tick in every move
Just face the unpredictability
And put your trust in Trader Psyches
To bring the right mentality to you