What is aggressive? Does this mean that you think about how to make money verses how to keep it? How does this have anything to do with how I trade my system? I simply execute.... I have an Uncle Point and I expose myself, according to my Bankroll...am I missing something? Michael B.
This reminds of my old coach who said defense wins games. The problem with this theory is that some points scored are inevitable as no defense is 100%. With trading defense just keeps you in the game longer because if you are not aggressive then you will just churn until commissions and stop losses eat your capital up.
It seems to come down to a verification process, don't you think? If you read the Soros quote, it says "if you're right" and Soros also talks about the market as a device to test hypotheses. What does that tell you? Feedback. If you can incorporate a reliable feedback process into your trading that gives you the edge to quantify your edge, you are allowed selective aggressiveness. That could include a feedback on timeframes other than the ones you actually trade. I leave the rest to your fantasy...
Risk management and the "mentality" of defensiveness are two different things for me --- risk management needs to be incorporated into your Offensive Playbook and risk management is not "defensiveness". Payton Manning's offense can score touchdowns with a balanced run/short pass attack or he can chuck bombs --- it all depends who and how the other side is playing. your designed offensive plays need to incorporate the risk management necessary to carry out your attack in accordance with the threat. defensive trading to me is about your "mentality" when trading ---a tight, fearful, or overly cautious approach is just not the perfect psychology for success imo. Steve is not wealthy through a defensive game plan, and he is the best quarterback in the game right now that i know of.
Somewhere in the middle. Not being aggressive but not conservative by waiting for decent size gains as opposed to grabbing the early profit.
unfortunately one NEVER EVER hears about those who are not aggressive and their capital slowly bleeds away...... surfer
'In both the sports and military world, the saying is, "The best defense is a strong offense." In the trading world, I think it should be changed to, "The best defense is a strong business plan.â ' from The Best Defense by Mark Phillips
hi oldtrader, my aggressive offensive trading idea is certainly not meant for someone with the capital resources of PTJ. when PTJ started he was EXTREMELY aggressive and played constantly on the offense. this is documented on the rare and removed from the market , film entitled "trader", in which you witness a young PTJ at his aggressive finest. certainly, once the aggressive offense brings you great capital, defense takes a much greater role in the overall strategy. surfer
PTJ was right on. He was also right on when he said this: "Suddenly a lightbulb clicks on and you start visualizing in advance the scripts the markets are following. These are the occasions when you have to max out with mega-positions and play just as hard as you can stand it." Big contradiction? Or perhaps no real contradiction at all. Just two sides of the same coin. (With that said, PTJ probably stressed defense in his M wizards interview for one reason: most folks don't realize you must earn the right to be agressive, by first being consistently conservative.) For the truly skilled, there is no artificial dividing line between offense and defense. They blend into the same thing -- correct action at all times. A great trader acts as he does because, given what he knows and understands, he simply could not act otherwise. In my opinion, when a guy like PTJ speaks of offense or defense, he is just highlighting one aspect of an inseparable whole. The full picture is almost impossible to pack into a small space, especially in words a neophyte interviewer can understand. If the offense / defense thing had a standard formula mix, there wouldn't be any great traders, just formula followers. Why aren't there more Schumachers or Federers or Jordans? Not everyone gets to a badass.