since he is the one pulling the trigger he is the most important part. Without him nothing happens. A system that works 100% of time would never work unless executed. but i know what your attempting to say. pierson
Yes, confidence is everything. I recommend that you trade small enough so that you can focus on system performance without too much fear of gain or loss on your positions. Run in this mode until you gain more confidence, then slowly size up. If the system performs, you'll have plenty of time to profit when you move to full size. If not, you will have saved yourself the losses.
came back after lunch.. and took 2 trades that fit my criteria.. and that was after losing on the 1st.. and I closed that position out quickly and waited for the next signal.. in the past I would have held on to it waiting for it to come back or get stopped out.. my discipline is improving.. I just have to keep working on it. thanks for all the comments
with simulated trading. Have enough money and once you see the test results are good you will have more intestinal fortitude - if not set it up with the broker. (I assume you are at least a swing trader or longer. Testing the system that is a daytrading kind is harder. )
I believe that system development has a place in trading, but that that place is limited to punctuating the day with signals which reinforce and support simple trend trading principles. The problem with system trading, as the estimable Linda Bradford Raschke pointed out in her recent Active Trader interviews, is that the stops are outrageously wide relative to the gains. I have done a lot of system development and system trading, have suffered the doubts which I believe you are experiencing, and have concluded that pure system trading is not the best path. Trend trading has the benefit that it is slow on whatever time frame suits you psychologically, helps you to avoid the temptation to respond to "noise" (which hooks into your character issues), and gives you the leisure and tranquility to thoughtfully examine and respond to what is happening in the market, as opposed to what is happening in your head.
You have to break one of the fundamental laws of human nature. You have to learn to love uncertainty, for it is this uncertainty that gives winners opportunity and losers fear. Once you discipline yourself to race after uncertaintly where ever you find it, you will be a trader. As Horatio Nelson was quoted "Never fear the event" Good luck, and have a nice weekend. Think about these words when you are most relaxed. If you can, just before you go from awake to sleep.