Should one sacrifice common sense for profitable system?

Discussion in 'Trading' started by cashmoney69, Aug 22, 2009.

  1. why would anyone sacrifice a profitable system for anything, even common sense?
     
    #11     Aug 23, 2009
  2. My profitable system is based on common sense so for me sacrificing common sense would mean profit suicide!
     
    #12     Aug 23, 2009
  3. Ash1972

    Ash1972

    Unfortunately 'common sense' has no real meaning in the world of system trading. The best systems spend the majority of the time losing money and make money in short sharp bursts.

    You need to be comfortable with a completely counter-intuitive way of thinking. That will generate the big profits.
     
    #13     Aug 23, 2009
  4. iukka

    iukka

    "I dont want to act impulsive and trade myself into a hole, but at the same time i need to have an unbias mindset and trade the rules that I have developed. Should I still take the trade if I have a strong opinion aginst it?"

    "have others had this problem?,what do you do in this situation?"

    The better not to have opinion of trades at all, usually the most difficult trades are most profitable. I made some research last spring by comparing the outcome of trades I took to outcome of trades I did not take. Actually, I missed the very best trades by making these "clever" quessings. After this I have tried to take all trades since only this will ensure profits.
     
    #14     Aug 23, 2009
  5. If you are not a very successful trader now, it is because you are not abnormal. The traders that approach the markets in an abnormally minded way are the ones that make up the 10% of money makers. If your indicators/edge are that good, let them tell you what to do.
     
    #15     Aug 23, 2009
  6. NoDoji

    NoDoji

    If you developed rules based on positive expectancy and profitable outcomes outweighing unprofitable outcomes, then you have to trade the rules you developed.

    I'm one to talk, having taken one of my signals ONCE this month despite the fact that it sets up every day. Every day I second guess it ("looks weak here for a long", "market's way too overextended", it's already dropped way too far to short", and so on).

    The day I took it was it profitable? Yes.

    Did I cut 2/3 of my profit by letting my bias get me to exit too quickly? Yes.

    The days I didn't take it was it profitable? Yes, again and again and again and again and...
     
    #16     Aug 23, 2009
  7. I'm not yet profitable but I think I have the best ideas I've ever had lately. First, you might try looking at the same problem from different angles and try thinking what others would be thinking if they're using one of the indicators. The other is the impact of supply and demand ahead of some important news coming out. And then the overall trend.

    I don't know if anybody else would agree with me on this but, I've been watching the Forex markets for the last few months and I think if you look at the Forex markets as a game of strategy, I think you'll find many more situations (than in the stock market) where some traders would be "out-foxed" by some moves.
     
    #17     Aug 23, 2009
  8. Thanks to everyone that gave an insightful responce.
     
    #18     Aug 23, 2009