I don't agree with most of you , as far as i can see , if one wants to succeed in trading one should think of only one thing , finding an extremely profitable strategy and chase this goal as hard and deep for as long as one can , surely having a profitable strategy is the only way to succeed , unless you think your going to get lucky . Money management, psychology of trading etc are distractions that dilute the quest for the only possible way of succeeding , finding a profitable strategy .
finding a profitable strategy But when you play with fire you get burnt...I think that understanding the game and finding the edge...and then re-finding it...goes hand-in-hand with the items discussed in this thread. I believe every personality might learn to trade, finding out is the journey...there is no "can" to place the market in...
Henry, How may one go about finding that method without trial and error? The goal is to try different styles and hopefully you have enough money left over after your market tuition to take that preferred style for you comfort level and build from there. You have to test driver many lapped before the track becomes comfortable. The reason that many traders fail in this field is that they wreck their ride before they understand the proper method or line on this race track. Buckle up, slap on that helmet and do not go head on in to any walls head on......once you have some experience than one can refine the style/method and understands the track much better. You usually do not go out and buy that systems off the shelf and generate a 45 degree equity curve from there. If you buy a system than there is a 90 % chance it broker down and the environment has changed and they are getting some extra shillings for the old crap and rolling some new version out for themselves.
I think we agree that trying to purchase your winning strategy is foolhardy , and i agree with you about trial and error , it's just this trial and error should be about predicting the markets and finding the answers there ,in the markets , not navel gazing!!
How can one "predict" a new outcome with OHLC and volume?... "statistical trading" and "reactive trading" go hand in hand don't they? I agree about focusing time on the 'finding the edge"...but also one needs to know how to trade "themselves"... Does the shoe fit?
Done a lot of "trading yourself"have you sweetheart, i know some girls like that myself , the practicalities of trading can be learnt , but the insight that gives you a trade that wins 90%of the time ,thats key .
although technically speaking one could still lose if the 1 trade out of ten lost big enough , it's not what i was trying to say , I meant to say a very and consistently profitable strategy, with losses similer to wins , though there is a technical loophole in the statement ,I admit.
Something to ponder over: Trading is simple, but it isn't easy. Seems contradictory, right? Simple may equal easy everywhere else, but in the trading and investing arenas these concepts are hardly synonymous. Why is that? Why do traders hold on to losers and take quick profits? Cut your losers and let your winners ride - this is the rule. But many traders do just the opposite. Ever been your problem? Is it still? I ask this question in my seminars and inevitably almost everyone (at least the honest ones) admits that this is their biggest failing as a trader. Why? What keeps us from walking the talk? What's your answer? Trading is simple to understand, but it's difficult to execute. That's because we are looking for the answers in all the wrong places. The solution isn't outside of you -- in charts, fundamental analysis, research reports and other blind alleys -- but squarely between your ears. Traders often use the word discipline. Who are they disciplining? Their dog? Their children? No, themselves. More specifically, their EGOs. We are hard-wired backward for success in the markets. We want to avoid pain and only seek pleasure. Taking losses is painful and taking profits is pleasurable. So, it is only natural that we would take quick profits and delay taking losses. We are naturally wired that way and that is why trading is simple but it isn't easy. Overcoming your wiring is tough and takes a lot of training. Are you training for success or simply stumbling along? Resolve today to master your self and make the simple easy. Understanding the process is the first step!!
I just realized I have many novice ways....seriously... We want to avoid pain and only seek pleasure.