Statistical principles and tools as used in Black -Scholes assumptions which remains corner stone of risk management world wide from petty traders to large hedge funds and wall street banks may not really be so robust bull work against risk of seismic proportions as so often touted. In the era of Algos and high frequency trading ,outliers and black swans are too common ,wide spread and frequent than formerly assumed and threaten to wipe out trading accounts in few seconds
Greed does make all of us to be attracted to all kinds of rewards or opportunities our luck or life tosses at us.We tend to develop biases and act confidently expecting positive outcome.This is our approach to life called positive approach virtues of which is in our DNA
Another sort of questions arising while trading/investing based on time frames. Which time frame should I prefer? And weightage should be prefered shorter time frames or Longer timeframes if we are looking for trades/investment using multiple timeframes?