How can i become a good trader? The question is simple but the answer is complicated, because not everyone has the temperament or ability to make themselves a "good" trader. Not everyone can deal with loss and making mistakes and adjust to a life of uncertainty. I traded for 25 years supporting my family never knowing if I would make money in any month. Lived with in what I call controlled chaos for a long time. I'll define "good" as the ability to constantly make a decent return over time. Most of the member here say over and over it takes years of hard work to get there. I'll say it takes what is necessary to find your edge. For some it is long hours of paper trading and then correcting mistakes with real trading. For some it is finding a mentor-paid or otherwise, that can send you on the right path. For some it is joining a prop firm (Not talking about JBOs) that will train them in a process that works. Working hard/long hours is not a productive as working with the right people that can help you find a system, strategy etc. that works, that you can build on. I'd say if you can't find a profitable strategy in years, you are not looking in the right places. You don't have to be the smartest guy in the room to make money. You have to find a strategy that works in the market we have today, manage your risk and do the same thing over and over until it does not work any more, always looking for the next idea that will keep you current with today's markets. I did well for 25 years. I was never the smartest guy in the room. I never took excessive risk. I found my edge and left the floor a few years after the edge was gone. I was good not great. Great is overrated and comes with consequences. Took me 6 months to find my path. Bob
Like most everything in life, the effort expended is directly correlated to the quality of the result. I don't mean to be a buzzkill, but please be advised that there's a great deal of bullshit and noise and outright thievery out there in terms of quality actionable material for a newbie.
If I had to do it all over again, I would learn as much as I could about advanced statistical modeling and data analysis as early as I could in my trading career. Fortunately, I was an engineer by training so that did help a bit. At present, it appears that there is great promise in machine learning. I mention this because IMHO an automated trading system can theoretically at least sidestep the frail human condition of trading system self-sabotage and emotional conflations.
Hi Greetings, bone! Glad to see u r still around and kicking. How have you been? Am just curious, Is Nodoji still around? Baron said no a few days ago.
Can anyone suggest some good statistical modeling and data analysis? Which oscillators do you feel essential for a good daily trade, 15 minutes or 60 seconds? I use bollinger bands, long, medium, and short-lived mobile averages, Rsi, fix resistances and supports, and observe signals, looking primarily at the fundamental trend: I do so for 15-minute timeframes; For the 60-second options I keep up the price. To improve my oscillators, I should add some more and what should I study to be able to improve beyond the texts required for the first question?
Well I think automated trading is a fantasy. In Elders book he gives comparison to pilots in a plane when there is an automatic pilot available. I believe you cannot Autonate a human function requires judgment and quick decisions. Do you think we can automate surgeries? Yeah I know. We have automatic cars but not yet As I have posted on other posts. I don't belirvr complex technical analysis Is not necessary as well. If I was wrong I think Bill Gates would be managing Warren BuffeTs money and not the other way.
Since literally billions have been made by totally automated trading systems, you are incorrect in what you say. Totally automated systems have crushed all time frames. Renaissance Technologies is a prime example of a firm that has made billions with totally automated systems. Re Buffett. I am a fan. As a side note: over half his market outperformance has come from leveraging his insurance float and another chunk has come from an ability to get deals others can not. Of course he is no slouch at stock/deal picking, managing his firm, capital allocation. To me, Buffett is a great teacher and thinker- in many areas.
Bob, Thanks for your generous and good response. How did you know your edge was gone? What did you do to define your path? Thanks