Solid advice Ken. I am also in the camp of the psychological part of trading is more important than the strategy. Whenever I go through draw downs (they happen to everyone) it's not the strategy, it's me over thinking things, not taking trades. My strategy is very systematic. The set up is there, you pull the trigger, EVERY TIME. There is no room for thinking "Do I do the trade or not ?" In the past what has gotten me in trouble is after a few losing trades in a row is to start over thinking and coming up for excuses for not doing the trade. Then I pass on a set up. The trade would have been a lay up. To me losing trades are really no big deal, part of the game. But to pass on a winning trade you knew you should do is absolutely horrific. So now instead of making a good chunk of the draw down back I'm in the same place P/L wise. To me that is BAD trading. This happens less over time the more you trade. One thing I do now is once I'm done for the day that's it. Forget whether it was a good or bad day and move on. When I come into the next session I forgot what happened yesterday. In my opinion you have to....trading really is a giant mindf*ck at times. If you can get through that, to me the trading part is easy if you have a solid well defined strategy.
I agree. That pretty much sums it up. You have to understand the market: feel her...talk to her, make love to her... ops: -- I like to refer to the market as She, kind of like referring to the ocean. ...Just like sailing and trading...you're not fully in control...She is -- and you have to understand Her current temperament and mood and feelings. The Market is... Part Art, Part Science...so following "a solid well defined strategy" won't always work...and can infact just do more harm to you instead
How can a well defined strategy do more harm ? I gotta hear this one. This sounds beyond stupid to me, but will refrain from saying anything else until I hear what you have to say.
I'm referring to linear robotic traders or systems...that don't really take into account the much important finicky human element of the markets. You can't just build a system or robot, and set it and forget it...and expect money to be printed out daily. ...like I said: the Market is Part art, Part science. (and those can variations can vary greatly on any given day or moment.)
Uh huh............when you watch a market trade can you tell the difference between a human or a computer that is doing the buying or selling ? What is this important finicky human element ? You can't just build a system or a computer and let it trade? Really ? Somebody better tell James Simons that. I think he has done pretty good going that route. For the record I am a human being ....not a robot. So I have no dog in this fight.
Still waiting for the "Do more harm" part..................... From your posts it seems you might be drinking more than diet pepsi this afternoon.
Have the foresight of support and resistance levels in mind, and have logic and reasoning behind those. -- so you won't necessarily be hit by a cliff. This is the human element of it. ...if you're a robotic linear system trader, then you're bound to fall up a cliff blindsided (This is why i hate Debating; there is no end game...you can do this for hours. kind of a waste of time, in my book. I just like to make my point,then leave.)
I'm not trying to debate about computers vs humans. I'm an old school trader so really don't get involved with programming systems and all. Some of my order entry is automated, but I am the one making the decision. Not R2D2. I just thought that your saying having a well defined strategy as being a bad thing is beyond ridiculous. Having a well defined strategy absolutely doesn't mean it has to be programmed or run by some computer. A lot of the very good human traders I know have a well defined strategy.
It is unbelievable, I take the same approach, except waiting for 30 minutes and trading with real money. My results so far are close to JoshLowe005's, also with 30K invested. This must be my lucky day to stubmble in this thread. Can't wait to read more posts from J_Smith, Ken Busch, EPrado, and especially AT for being such an indispensible facilitator. Josh, lucky you, starts at age 20. Hold tight this unusual opportuity offered by J_Smith. Accept his challenge and learn from him. Best wishes to you! Swift