I've heard you say this before, but not sure why. There are exactly just as many ways to lose money in the market as there is to make it. My advice to a new trader might be to keep it simple, know what you're going to do if the market goes to x or x happens, before it does (ie anticipate scenarios before they happen.) Don't overtrade in the amount of trades or the amount of instruments watched. You could be focused on x, when y happens in another instrument, and totally miss it because you were distracted. And don't get hooked on stops...imo they are best when used to avoid large losses, not small ones.
I’ve been trading stocks. but I’ve decided I’m going back to my original plan. My universe will be the 11 Sector Spyders, plus maybe SPY, IWM, AND QQQ. That’s it. For now, it’s better to stay simple and focused. More to follow.
What are your thoughts on considering the following as at least as important as the -what to trade-, the -how to enter, exit, size a trade-? https://www.elitetrader.com/et/threads/trading-plan.365502/page-2#post-5556449
Yeah, I would agree those things are just as important. I singled out “what to trade” because that’s the starting point, I should have said that more clearly.
I think there’s a good point to this question but I’m not sure what it is or where you’re going with it. In any case of course I think rules based trading is the right way to trade if you’re going to be active because it takes all of the emotion out of any decision you make. I will never get to the point where I’m writing Algos it’s not my thing and I don’t know how to do it and I don’t wanna learn but I do plan to have a set of rules I’m just not sure what they should be right now, working on it
If procedure does not exist then discipline to the non-existent is irrational. Maybe this will offer some direction, tip of the hat to comagnum, "What would you say belongs in a solid trading plan? The main thing is to have one, few retail trader do. Keep it simple- a few lines will get you started, you can always add on to it...." https://www.elitetrader.com/et/thre...solid-trading-plan.340340/page-2#post-5011924
A question for the artistic / intuitive traders out there - without a plan detailing in print what triggers a buy or a sell to open and what triggers an exit, then what determines for you when to enter and exit a trade? How would you teach this skill?