I checked out the link you posted and it is pretty funny that everyone will blindly follow a system without some knowledge of the market their trading (read the posts on the link!).....I am unfamiliar with Jack Hershey's "system"...what is the risk management involved with it aka when do you cut the losers in the trade?
Here is the reference: "It is the top loser in the challenge there! Y- Jack Hershey 01/06 * MANU 14.57 1.61 12.40% 5,850,300 -1.61 n/a -2,736.79 Application Software ASMI 23.28 1.91 8.90% 439,400 0.11 193.6 462.92 Semiconductor Equipment & Materials ARXX 10.71 0.86 8.70% 948,800 0.18 53.6 -4,943.34 Aerospace/Defense Products & Servic PECS 24.71 1.8 7.90% 461,100 0.47 51.3 -4,188.62 Business Services GRTS 27.05 0.95 3.60% 122,400 1.58 15.5 2,049.00 Specialty Retail, Other ICTG 15.8 -0.19 -1.20% 23,100 0.63 26.8 -945.56 Business Services DYII 9.79 -0.32 -3.20% 162,300 0.81 13.5 -6,270.48 Hospitals RMCF 12.72 -0.52 -3.90% 700 0.95 12.9 -2,604.65 Confectioners TRPS 19.64 -2.16 -9.90% 315,200 0.62 37 -2,206.35 Technical & System Software 2/ 7 ($21,383.87) -23.8% -23.8% That is: -23.8 (!) and it is the top loser there of total 14 participants..." The post was made on 02MAR02. As was later noted by dufferdon in the thread....I (Hershey) trade a cycle which is of short duration, i.e., a position type trade that was at that time 6 to 8 days. Since about 1957, I have used the same type of trading account and trading management. It is not complicated. All capital is kept in the market according to the three trading strategies: PVT, SSR and SCT. The reason is that you have to be in the market is to make money. Secondly, I have a requirement to be on the right side of the market at all times. This is the single requirement for making money over time. Lastly, I take profit segments according to the two principles above. The reference above was to a "challenge" that did not make it possible to follow the principles just stated. The same is true for the CNBC trading contests. You train trainees and do not do what I do with those I mentor. I insist on the three principles and a person knows very soon, meaning within a few days, just how all three principles work and are measured. There is nothing complex about trading using these three principles. The only aspect of trading that is a concern, is the trader building his mind to be able to use his mind. Your trainees do not get that benefit as you say and because of the way and scope of your asking questions in various places. In stock trading about 7 out of 8 trades completely fulfilled profitable cycle and the other 1 of 8 becomes a wash or small profit. The nature of Sector Stock Rotation precludes cycles not completing and in SCT, trading mistakes result in small profits over short periods. In mentoring traders, the objective is to learn to learn then use that skill to know how markets work thoroughly. Because of the ability of people to work rationally, there is no time a person while learning and trading, would not "know that he knows" for any given level of knowledge and skills from day one. To make this a possibility, it is necessary that the person be in a place where he has immediate support and guidance at all times when he is observed to not "know that he knows". My approach to this is to work and narrate a period of time ahead of the market. The person I am working with determines how far ahead he desires to know what will be coming up. Learning traders have a requirement to kinow ahead of time what is coming next; this allows them to perform continually in a successful behavioral manner. The corrolary to the three principles(See above) that make this possible is not complicated. In any multidimensional market representation, the market operating point migrates and does not jump around. This is what puts all the pieces together. This is new to you and outside of your experience up to this point in your market activities. It will continue to be beyond your reach and, probably, your comprenhension. A person who has gone through the transition of learning the markets, winds up in an intellectual place where his mind is fully differentiated. An example of your mind's complete differentiation in a subject field is the multiplication table. You are very conversant with all 144 entries in the two dimensional matrix for doing multiplication at the traditional mercantile based "dozens" level. You do not have to use repeated addition to achieve a result that is correct. There are many kinds of traders who are at risk when they trade and their money is at risk, too. I read of how they measure such matters and the consequences they enjoy as a result the type of conditions they allow themselves to endure. Google traderzones to read about how he deems that he is at total risk all the time(except between trades, if any ever.) None of these people deal with the bridge from where they (in risk and not knowing what is required) are to the combinatorial advantages of the three principles above and always "knowing that you know". What knowledge and skill is required for each principle? Very little. In real time, it is very easy for any person to "know that he knows" and behave accordingly. There are only four simple measures relating to all market variables, that can be made at a glance. Repeating the routine that follows the measures is a very relaxed and coherent process. I agree, you do not know what is done in trading.
Acrapolis/GreatMatez, I see you decided to resurrect a Hershey thread that's almost 2 years old. Congrats. Funny thing is, you have said on several occasions that if the mods didn't keep closing down the threads and just let them die naturally, you wouldn't keep starting them. Seems this thread was going to die, mods didn't touch it, and yet you STILL brought it back to life Sounds kinda hypocritical, kinda like your bitching and moaning about people who use the ignore function right before you started advocating using it! hahahaha
They have a poll going in a thread on ET... 90% are voting that psychology is 90% of the game and strategy is 10%!!! I was floored when I read that. It means a steady income stream for a lot of us for decades to come probably... I made some improvements to SCT, if I wake up in a generous mood I'll share at some point, assuming it works out in practice... you'd call me an inventor but basically I love a good math problem and trading is a good one...