Six Steps to Better Trading

Discussion in 'Trading' started by Joe Ross, Oct 30, 2009.

  1. 1. Focus on markets, trading vehicles (i.e., equities, futures, options, spreads), strategies, and time frames that are comfortable for you and that suit your personality. The trades you make have to be “yours,” not mine or those of anyone else. Even when you purchase a method or system, it is vital that you study that method or system to the point that you thoroughly digest and understand the rules. That way you make it your own.

    2. Identify non-random price behavior, while recognizing that markets are random most of the time. Look for repetitive price patterns and setups, but realize that once you begin trading them, they may become short-lived. If or when they stop working, be patient. Most of the time they will begin working again. When we released Andy's E-mini bar, it stopped working for awhile, but those who stuck with it send us glowing letters telling us they are satisfied with the results. When you have a provable method, give it a chance to work. When you see an overall one-year equity curve showing that the method earned $7,400 trading one contract at a $10 commission, work your way up to a 10 lot and you will be making in excess of $70,000/year. Then collect more than one method or setup so you can make considerably more.

    3. Absolutely convince yourself that what you have found is statistically valid and tradable in the way you like to trade. Not all statistically valid situations will be comfortable for you, nor will they fit your management style.

    4. Set up trading rules; but remember, rules may have to change.

    5. Follow the rules, but never to the point of destruction. You created the rule. If it stops working, change the rule, or throw it out entirely.

    6. Learn to trade for fewer ticks but with more contracts. Most people do it exactly the opposite way.

    The bottom line: personalize your trading to yourself (independence); and do the right thing consistently (discipline).
  2. Rule No.6. Not seen that before, but makes perfect sense. Thanks:)
  3. Yeah, that's been a quandry for me for a year or more. I can get 1-1.5 points on the ES on a consistent basis. I even know why I got in: just not sure when I should get out. Anyways, at the end of the day I have 5-6 pts. with 9-12 trades: just doesn't seem to be the right way to go. I get espiecally frustrated by this when I see that my 1st or 2nd trade would have netted 12 pts. or more. This happens at the friggin' time !!!

    The eternal, (not in Joe Ross 'eternal'), question is: do I scalp or trend !?!?

    BTW, if this really is THE "Joe Ross"; I can tell you that I read all of your emails and really appreciate your Trader Trick entry and other thoughts.
  4. I am afraid to state that you DO NOT seem to satisfactorly understand what statistical models are. There are two parts: statistics and the model. You focused on the numbers. You do not understand the model part.

    In order for a human brain to accept the trading model, he has to understand the model part. Science insist on the same, for valid reasons.

    I do not belive that you are able to comprehend the concept of model, because you seem to be in the trading education for a long time and if your mind were to conceive of it and accept it, you would have already understood it.

    Traders: a main reason why you do not convince yourself is because you are intelligent. You want the why, while being ready ready to accept the mistakes of the model.

    The other parts to do the trading, is to be "stupid", or not think and just trade the statistics, and forget the the model part. If this is the case, why not hand the job to cheaper labor including a robot of some sort?
  5. Do you want to know the why?
  6. 0008


    Is it manily for short-term traders?
  7. Retief


    Rule #7: If you can't trade for shit, write.
  8. You don't really want to have a head to head comparison between Joe Ross and RFT, do you???
  9. Rule #6 is pertinent for short-term and long-term trading. The idea is to be paid to trade. There are two ways to approach it: 1. Scalp--take it all of at once, with few ticks, on very high percentage setups. 2. Scalp out a few ticks, so that you are paid to trade, and then hold on with a trailing stop in order to take as much additional profits out of the trade as you can get.

    Yes this is THE Joe Ross. I cannot spend a lot of time on forums other than posting. I post in order to be helpful. I have enough answering of questions to do on my own forum where we don't allow traders who use foul language to post.
  10. Yeah go for the smaller moves, the smaller the better -- this way even the noise is tradable and you can pretty much have action all day long. Let's also try to give your broker as large a percentage of your gross profits, after all it's only fair, there is no i in team.
    #10     Oct 31, 2009