I think part of the distinction is the difference between discretionary and system trading. If you're trading a well defined system, the move between sim and real money ought to be at least somewhat painless because the system itself should remain unchanged (again, assuming you're not moving volume). If the system is implemented via computer, it should literally be the same code. If the system is implemented by hand, and you find that you were able to follow the system in sim, but not in real money, you may not be cut out for trading. I don't mean to be offensive, that's just how I feel - if you don't have the gumption to do what you say you'll do, this is a bad business. One option might be to code the system up so the computer will do what you psychologically can't. Discretionary traders have a MUCH harder problem when they move to real money. Since there is no system, they have no idea if they're doing the same thing in real money that they did in sim. I think all discretionary traders have to have a very big ego, and very good skills to succeed. Especially if they trade on a short horizon and make lots of trades. Frankly, discretionary trading scares me, and I probably only make an average of one non-system trade a year because of that.
Big D, those are all valid points with one exception: you neglect to mention that you must have a good working system in the first place. After all, the computer only does what it's told. As such, to assume that a mechanical trader is a better trader than a discretionary trader is an overkill. I'm of the opinion that you cannot become a successful mechanical trader without first being a great discretionary trader.
When I first started trading in the early nineties (1990's ; I turned 10k into 50k in six weeks then lost it all in the next two weeks. Holysh*t! :eek: When the bubble popped in 2000, I lost a million bucks. 2x Holysh*t!. So what did I learn from all of this? I fired my brokers and learned how to do this for myself. This time I saw it coming by the end of 2007 and had my and my wife's retirement accounts in cash during 2008. Anybody that says's TA doesn't work is a horse's ass. Last thought; you're only as big as your biggest loss. Blowing up your account is a right of passage.
I know it's fashionable these days to diss anyone who remotely resembles a poster child for success, but to sweep everyone under the same category is a sign of self-immolation (read: mental disturbance) that seriously needs professional help. On a serious note, shall we maintain a balanced approach?
if you have never blown up your account you will never become a profitable trader. As in life, in trading first you get the test then you get the lessons. the questions should be how many people have blown up their accounts and then had the balls to try again? I may be down but i am not out and that is the attitude you need to have to become a successful trader. do i make mistakes? yes. do i learn from each mistake? yes. do i get emotional every now and then? yes. Do i ever give up? No.
used to b e the sayin on the fooor,u never lean til the 3rd blowout,so no shame ,just dues,there was no sim option then
Actually, I haven't cast my vote yet. But I will tell you this. I too once blew up my account at the beginning of my career, so you know which button I'll be pressing. Certainly not the last one. No, I'm not taking anything personally. I just don't buy into the notion that 99.9% of the traders fail. Even if a large chunk of them blow up, I would like to think a lot of them will eventually claw themselves out of their grave. Since I belong to this particular group, I also share the same opinion as many of you that going belly up does more good than harm in the long run. It definitely gave me a new perspective not just on trading but on the meaning of life in general.