Do You Have A Trading Plan, and Do You Know It Inside and Out?

Discussion in 'Psychology' started by RAMOUTAR, Jul 22, 2003.

  1. RAMOUTAR

    RAMOUTAR

    Setharb,

    That sounds like one hell of a track record. Unfortunately, as you know many of the strategies were dramatically affected post 3/01. The size of the account is really irrelevant, what is relevant is the money & risk management of the account.

    The strategy won't keep you disciplined, but your comfort level with the strategy will help you relax. I find it hard to believe that the entire strategy has lost it's effectiveness. If I were you, I would thoroughly review the entire strategy, and determine which of its components are still applicable. I went through the same challenges many times over the years. Whether its market dynamics or regulation change, my strategies were affected. One of my priorities is to get my arms around these changes ASAP, and tweak my strategies so I'm not compromised by the changes. Like evolution, today's species have managed to adapt to their changing environment. Don't be so quick to throw out the baby with the bathwater.
     
    #31     Jul 24, 2003
  2. I have a plan but i don't have any. The plan comes when I see it coming. I just react to what the market tells me and do not create one without it. I do have a plan for my mechanical systems but thats a different story.

    Good trade

    trend:D
     
    #32     Jul 24, 2003
  3. I understand what u're saying but adapting is always not the best way to prevent it. It is sometimes clever to quit. It is similar to optimizing systems when unprofitable. It doesn't work out in the long run.

    And... the size of the account is also an important part of money management and some strategies still work after 3/01 and some don't. It depends on what kind of strategy u create. When it doesn't work u have to quit and move forward. You have to dump your system like u dump your girlfriend.

    Good Luck.

    trend
    :D
     
    #33     Jul 24, 2003
  4. ================================

    Honest answer is yes.

    It includes blue, red, black ink on white paper & charts.:cool:
     
    #34     Jul 24, 2003
  5. ttrader

    ttrader


    ... or, maybe the other way around ? :confused:


    ttrader
     
    #35     Jul 24, 2003
  6. ttrader

    ttrader

    Doesn't this contradict the poll result(66/33) ? The crowd (66) HAS a plan ... at least it says so ... i guess this is typical case of superiposition ... so many traders with NO plan mix together on the stock market and then a 'PLAN' is generated :) ...


    ttrader
     
    #36     Jul 24, 2003
  7. damir00

    damir00 Guest

    i don't see it that way. plans come in many flavors: what i'm "fading" is the aggregate of all plans and non-plans.

    :
     
    #37     Jul 24, 2003
  8. RAMOUTAR

    RAMOUTAR

    Setharb was not specific about the strategy he employed, in most cases its correct to start from scratch.

    The money & risk management component and strategy are proportionate to the size of the account. You can build up any size account, as long as the preceding 2 components are compatible.

    The risk reward factors for girlfriends are much easier than wives. Fortunately, I married my best friend. :)

    Thanks for the exchange, be well.
     
    #38     Jul 24, 2003