Can you really make it as a trader?

Discussion in 'Trading' started by Joe Ross, Sep 25, 2009.

  1. You alone determine whether you will succeed or fail at trading. You alone are in control; take responsibility for your performance and your life. There are always tremendous opportunities in the markets. It is not what happens, it is what you do with what happens that makes the difference between profit and loss.

    You cannot marry a market or a single trading style. You have to look. Look at a variety of time frames and a variety of markets until you find the one(s) for you, the one(s) that fits your comfort level and trading style.

    Most traders move from trading system to trading system, over time, until they find one that suits them -- one that is comfortable to run, and tests well over (back-tested, then real) time. But don't expect a non-discretionary trading system to work forever. Markets change too much for that to be practical.

    You will hear about mechanical systems that work, and even ones that have worked for a long time. But those are usually not the ones available to you. They are successful because they are closely held, and the person using that system is not about to tell you about it.

    On the other hand, some traders never stop looking for the perfect system. That, too, is a problem.

    There are many systems or methods that can generate nice profits over time. To settle on a trading system that's right for you:

    First, you have to believe in the process by which the system generates trades. Who was the developer, how did he arrive at his methodology? Does it make SENSE to you?

    Maybe you're a visual sort of person and you are drawn to Candlestick charting. Take the time to understand why the patterns mean "reversal" and not just accept the "picture". Go deep.

    Second, whatever system you decide to go with, back-test it. In today's modern world of software, there's no excuse not to run all the recent back data you can through your system to see what the results would have been. Don't worry about testing the system for years and years. You can't trade history. Forty days back is enough of a test. You need to know if the system is working now.

    THINK about the system you are choosing and why it's right for you. THINK about the results you get from your back-testing and your real-time testing of your system. Be very methodical when you are trading your system.

    Third, work on your discipline. Unless you can control yourself, you can never control your trading. In order to control yourself and your emotions, you have to believe totally in your trading system or method, and above all, in yourself.
     
  2. If you are going to sell something, just say it.
     
  3. Retief

    Retief

    Forty days is enough? Really?