Even when you're daytrading, I still think it helps to have a plan for where you think the market is headed that day and over the next few days as that will help you guage whether you're trading with the trend, against the trend, or are in an oversold or overextended market, etc.
I think this is a great idea...the only difference is that in poker you can win with a shitty hand....please dont try bluffing MR. Market...he will make you eat his finnest meats and cheeses...
I just read an article in Popular Science about a guy that plays video poker in Las Vegas professionally. He said that in playing 5 hands the outcome is by chance but playing 500,000 hands the outcome is by skill.
Yes, ElCubano, this is very true. No bluffing allowed in the market.:eek: (unless of course you are a big brokerage house)
What's worked great for me so far (details in my journal): (1) Plan each trade completely, entry to exit, before putting it on. (2) At that point a robot should be able to execute your instructions. No deviations. If something happens not in your plan, oh well, make a better plan next trade.
This sums it up for me, you should know what you are going to do in any circumstance before the circumstance occurs, thereby eliminating emotion. These are how my best trades work. My trades that fail often lack a plan, or the plan is changed midway through the trade. If you are not able to do this, you are not ready to trade. Mark Douglas suggests that if you are not able to do this, it means that you are not willing to take responsibility for your actions in the markets. Trading is hard enough as it is.
The game itself, you can not; the trick professional video poker players use is to take advantage of pay out rates. A good player will be able to seek out a machine with a higher than average pay out for a particular hand, this is where an edge can be obtained.
Greed is a tough one. What Dr. Russell A. Lockhart (ral) recommends is simply (as has been written already on this thread) to have your exits (stops and profits) planned upon entry. When either is hit, move on to scouting for the next opportunity, and don't look back unless you need to learn why the trade didn't go as planned. By "didn't go as planned" I don't mean that it wasn't profitable; I mean that something occurred that you hadn't considered BEFORE you got into the trade! Here's what ral has prominently displayed at the top of his daily morning page: âOn every trade: an entry, a target, a stopâ¦no exceptions.â It takes the emotion right out of it, imho. You can learn more here: http://www.undergroundtrader.com/ral/
Exactly. This was his method. Play particular hands on particular machines differently due to the varied payouts between machines.