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