I thought you said trading was simple ak15? winning is the rule , not letting your winners run and cut losers short ,this may or may not be a good idea , unless you have a winning strategy , ( knowing when a trend will continue or not , depending if following or reversing strategy) i suspect your rule will make very little difference in the long run , whats more a lot of successful traders fade the market , trading reversals , where a belief that trends tend to come to an end at some point , is required!!
Let me correct you. I did not say that trading was simple. This is an excerpt from an article I came across. That is why I prefaced the excerpt with the caveat "Something to ponder about". I have my own opinions which shall remain undisclosed. My intention for posting this piece was simply 'food for thought.'
We want to avoid pain and only seek pleasure. Overcoming your wiring is tough and takes a lot of training. but this does not mean that pain earns pleasure...but sometimes it seems that way in life...but not trading... I do not "take it" that way.. TrulyPonderingSavant
Because you are consistently profitable and do not need to fix what works? How many brand new traders can state this? see thread title.
new traders may have to find a profitable strategy, which may be very difficult , but that doesn't mean they have to change the way they think, which is I believe what was intimated with the "wiring "comment.
I had to change the way I thought...but your right, every trader is not me. I thought that if I wanted to trade, I wanted to have the most robust yield for my time, no matter what. I then learned that I could not stomach roller coaster rides and preferrered tamer strategies... Perhaps i am self destructive...as how much money you make is the name of the game...not how you do it. I reflected on the "wiring" quote as when I am in a trade longer than I want to be because of its drawdown, I find myself escaping, with little profit, just to get out.
Perhaps i am self destructive...as how much money you make is the name of the game...not how you do it. I reflected on the "wiring" quote as when I am in a trade longer than I want to be because of its drawdown, I find myself escaping, with little profit, just to get out Electric: I don't see anything self destructive about what you did. Conversely, I believe you have understood the essence of what the writer of the article is trying to convey which is: Taking several small quick profits because it feels good - The fear of a winner turning into a loser Putting off losses since it is painful and thereby allowing a small loss to accumulate itself into a bigger loss and then adding to the pain and hence the inability to cut the loss. I think the key concept here relates to discipline. It is not so much about discipline in your trading but much deeper than that. It is disciplining your ego. The ego of a human being is the culprit and the root cause. Accordingly, the ego manifests itself in the trading patterns of an individual and affects the financial outcome of his or her trades. The writer is talking about how an individual is wired as it relates to his ego.