When The Gorilla and Lights present us with their trading plans and let us know how long they've been making a living from their implementation, we can all, I hope, benefit.
I've only recently taken seriously the need for a trading plan. I would bet that such plans are rare.
If you ever progress to a point where you can see real time an intraday move begin on a 1 min..., ripple through time and end up on a daily Or likewise start on a daily...,ripple through and end up on a monthly / quarterly You may rethink this statement Until then; Suffice to say no serious trader would ever profess to know what another serious trader wouldâ¦, or would not â do --- OR --- shouldâ¦, or should not â do RN
I think I get what youâre meaningâ¦, though it not what you typed Too much emphasis on plan.., not enough on trader Itâs called believing/ interpreting exactly what you see Allow me to redo ========== A trader is worthless if they donât follow a plan RN
No, the plan is literally pointless, if you can't follow it. Traders need more faith in themselves. Look at Richard Dennis, and his turtle traders. Anyone can do it, but not everyone will reach that point of consistency. Trading is unnatural. It goes against human nature. Here is a simple exercise. Plot a 20 SMA on a chart. When price goes above the line, buy, when it goes below the line, sell (or short), and ride the waves. And, you should not exceed 2% of your total cash, on all open trades. Also choose only ONE stock (or whatever you want to trade) no need to complicate things. Is this strategy the golden goose? Of course not, and if you think it is, you miss the whole point of the exercise. This teaches, patience, discipline, and basic money management skills. It isn't about technical analysis vs fundamental analysis. Or "is this better than that?" Quit focusing on the strategy, AND JUST DO IT. It is better to stick to the plan and lose, rather than keep altering it to win. It isn't about making money, it's about teaching basic skills needed to trade. That's it, that is all that matters. IF YOU MASTER THIS, THEN WORRY ABOUT YOUR PLAN OR STRATEGY. I honestly think that is the most I can help you guys who are asking, "how do you trade?" It doesn't matter what I do, you would still fail because you couldn't follow any strategy. If you fail this exercise, then trading probably isn't for you, go do something else.
Thoroughly-tested and consistently-profitable plans, yes. And, as I suspected, the gorilla doesn't have one. Which is why he believes that "nothing lasts". To say that a trading plan based on price behavior will never fail has nothing to do with arrogance or ego but with the fact that the law of supply and demand will never fail. Like price, it is self-correcting. If one doesn't understand the law of supply and demand and/or can't tell the difference between up and down without the use of indicators and/or has no thoroughly-tested and consistently-profitable trading plan, then, yes, he will believe that "nothing lasts" and will find himself in a state of perpetual struggle. Until he goes broke or quits. Unfortunate because it's completely unnecessary. But research and study and testing and planning require work, and recreational traders rarely want to do that. Which is why one rarely finds any but recreational traders on message boards, making profound statements that they overheard or read somewhere. After twenty years, I skip a lot of this stuff, but I continue to get PMs and emails thanking me for pointing out the obvious, and it takes little effort to do so, so why not?
You completely missed the point of my post. It is an exercise, to establish discipline and basic skills of money management. I don't care what you tell yourself. If you keep going all in on every trade (and leveraging the crap out of it) you will eventually blow up your account, despite your opinions on what your theory is for trading markets. By all means, don't use indicators, I never said I did, so don't make assumptions on what I do thank you very much. But to simply state "X NEVER FAILS" is preposterous, and terrible advice. I don't care if you have been in the business for twenty years, that doesn't mean you know everything about trading. To limit yourself to just knowing just price action, is detrimental and crippling, when there are so many more ways and dimensions to look at the world of investing. I've seen posts like yours before, people say "price action never fails" and think they are geniuses, because they finally don't need training wheels (indicators). So they up the leverage, and post a month later, "what did I do wrong." Lol