Couldn't agree more! In the volatile world of trading, it's not about having a crystal ball or some magical insight. It's the discipline to stick to one's strategy, manage risks, and continuously learn that sets the best traders apart. Consistency and discipline over flair and intuition, any day
Let me share with you the 4 pillars of Ed Seykota, one of the top traders and hedge fund manager featured on Market Wizards books by Jack Schwager. These are the 4 pillars: 1) trading system must be mechanical, 2) cut your losses and let your winners run, 3) bet small, 4) be humble. Trading system must be mechanical, removes human emotions from the trading and lets the trade go on, win or loss, subject to risk management already put in. Cutting your losses and letting your winners run, most retail traders do the opposite, hang on to losers as losses mount and take small profits. What you need is small losses and large winners, even if just a handful of them. Betting small means risking only 2% per multiple academic studies to minimize the chances of blowing out your account and losing all your monies. Being humble removes your ego from your trading which would make you think you are a genius when your trades work out but, what about the times you lose out? My comments are my own and although, I am trying to model my trading to Ed Seykota's approach, I do not know his trading methods which he keeps to himself. I believe if you can stick to the 4 pillars and use it in your trading, you can do quite well in the stockmarket.
this should help with your search on his source of trading methods https://en.wikipedia.org/wiki/Commodities_Corporation notice the simple trading approach that Amos Hostetter Sr. used and consider the connection he had to Roger Babson
%% Fine and amen; + watch SEC [sell] fee, not free . Even more or less when its SEPT Flair maybe ok ,rich Dennis liked it, as a matter of public record
the fundamental problem is that consistency and discipline cannot be defined or measured or quantified in any way. The thing that cannot be measured cannot be understood so we will never understand what they mean if we cannot measure them. You could just as easily throw confidence in the mix.
%% Good points , can be measured in most any way, not every way; i mean they snuck [hid]sucralose in some good energy drinks then put ''0%'' sugar LOL. NOT even sure its harmful maybe long term unless if that'$ all you drinkLOL So sure can/ in a practical sense measure all kinds of discipline. My remarks don't apply to single stocks/ not that Peter Lynch of jim Cramer would care . CAN SLIM has plenty of discipline measures, as applied to ETFs anyway. SEC fee, not free , sure not free in SEPT. certain exceptions apply. Good thing SEC did a reduce fee, not free\God bless them for that + SEC sell fee can be measured usually LOL
Consistency and discipline are your running shoes, helping you stay the course even when the market takes unexpected turns.