A good and complete system have mastered all market conditions, so it doesn't need to change. IMO. Yes. All this is important and it's easier to be disciplined and keep your emotions in check if you have a system with a positive expectancy and know what you're doing with confidence. I believe more often than not the actual problem is lack of a proper system which results in personal issues and emotions. Too much leverage and 'having to make money' also amplifies these issues.
%% Good points; but too much leverage is an improper plan. LTCM did get by with that-- for a while/years An ability to read with discretion WOULD be included; books, charts or numbers.
Risk management and position sizing. If you still have not figured out this is the missing key, now you know. I do not care how good your trading system is, if you do not manage your risk, you will blow up. Only question is now or tomorrow. Realize, one trade is no better than the next trade. That is one big reason not to bet big on one position. My biggest winners were the ones that I did not expect to be a big winner and I continue to be surprised. This is a game of percentages. Do you want to be the casino gambler or the casino owner? I would rather be the casino owner. That is by way of example. You can either play the percentages or bet against it. Your monies, your choice.
I see it the same way. I do not expect my system will fit the market 100% of the time. When it does not I actually expect a 'systemic' drawdown or a sideway equity curve to come. I am being prepared for this anytime I enter the market. But when the market regime matches my system I expect a new equity high. The strange thing is how 4 or even 6 different markets can do the same shit resulting into some decent drawdown ... some Murphy's law I guess
This past two weeks, I got into 3 new positions, all got stopped out on the same day. Today, I got stopped out on another 3 positions. On the plus side, I had profits on one to offset some of the losses and still sitting on a couple of winning positions I have not sold yet. This is still a game of percentages and as long as my trades are lined up with the trend, the big boys will take care of the rest. I am only along for the ride.
The only trait of a successful trader is one that makes money each month of the year for XX amount of years. Everything else is bullshitting and pony and clown show.
A very sensible post. I could not agree more, especially with the last part. People love to bullshit themselves, and they wonder why they keep failing.