Michel Pireu Columnist

From Long-Term Secrets to Short-Term Trading by Larry Williams: As a trader, the lesson is to never second-guess what value really is: it is what the market will pay. It may not be that value for long, but price is king. It is what it is. I learned long ago not to argue with what is. In 1974 I decided that the price of cattle would skyrocket so I began loading up, taking my first position at 43c a pound. I “knew ” the value of cattle; at this price it was way under value, offering a sure trade. As the price drifted to the 40c area, I bought more. After all, if 43c was cheap, 40c was even better. At 38c, where the price went next, I had a steal. Being no dummy, I stole some more, only to see the price plummet to 35c, then 30c and finally 28c — where, dear reader, I was tapped out. My resources were limited; this move cost me about $3m in less than 30 days. Two months later, the price of cattle soared to over 60c a pound. But I was not there — a sure-thing trade had set me back dearly...

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