That is true about gambling, but I am an expert poker player so I will just let you grab your wallet and give me the money. In trading its like poker you have to find the evidence that gives the clues that confirm the market is to trade a certain direction. CL
Most fail to recognise or understand the magnitude of what they are undertaking. Its easy to open an account and place an order. To become a professional day trader takes a lot of practice - the right kind of practice.
Thanks for the accolade, surf. I must however disagree with one thing you said: "Anything that can work in the market can be programmed." I'm not convinced of this. I believe discretionary trading can work, and probably does work for some traders. Sorry if I gave the impression that I thought otherwise. But it is an art, and most people will never be successful, not to mention profitable, artists of any kind. I learned early on that my abilities in the classical arts were miniscule or nonexistent, so it would be extremely foolish for me to assume at this stage of my life that the one exception to my artistic ineptitude would be discretionary trading. I must approach trading as a science or forgo trading altogether. Such is my lot and I accept it without complaint.
Yes, correct. Thanks for catching the mistake of mine. It should have read "any OBJECTIVE method that works in the market can be programmed" not ANY method. With this said, maybe there are successful chart reading savants out there, I don't know for certain, but I do know I have never seen evidence outside of claims and wild proclamations of success. surf
I don't believe successful chart traders 'read' charts, like reading tea-leaves. All markets have an inherent volatility/momentum, this is apparent on a chart, and on a DOM for that matter. A chart is somewhat random, but the successful chart trader will break it down into components and apply the appropriate trade metrics. A simple process that can be automated.
To avoid failure, traders need both trading skills and money. If you have money but no skills, you're like Baring bank If you have skills but no money, you're small trader like me
The undercapitalization is not the only reason. But I partially agree with the statement. Lower capital means higher risk% per trade. Or it means basing y our stops on what you can afford to risk. Your stops should be based on the system that you use. And the size of the position should be based on the stops. You should have a max risk % per day you will lose and a max amount per trade. This percent per trade is what helps you properly determine size. The hard thing is often, we have all been guilty of it, want ot make money so bad so fast we just risk way to much. Whereas making a little bit everyday adds up. Whereas trying to make a lot every day winds up in losing it very fast also. Risk % per Day Risk % per trade = trades per day If you hit it you stop trading - goal here is surival long enough to figure it out and keeping it once you do Also not overtrading once you hit that Risk % in profit - don't give it back - ie if goal is 3% - and your up 5% as you caught a runner - either stop or if you want to go for it you can risk 2% to keep going but dont give back the 3% Also withdrawal money - we often forget that is the point of trading its not to build a balance but to make withdrawals