Several years ago a friend was having trouble explaining to me what her stochastic indicator was doing on her charts (we were using different software). So, I downloaded a copy of her manual and programmed stochastics into my software using her parameters and the original formula created by George Lane. I have used this version of stochastics ever since and it has been the inspiration for and one of the bases of my trading system.
I had not traded for quite a few years. I was evaluating my old trading and getting myself up to date on the latest trading ideas and theories. One day I did a search on Google for "trend following" and a link came up.... http://www.elitetrader.com/vb/showthread.php?threadid=9828 This is when I first learned of Elite Trader and of a fellow named "acrary". My life has not been the same since. I would say that finding this site and the posts on here and all the great talent has been my biggest breakthrough. There are many examples of knowledge on here that can not be found in any book. This thread is another example of why this site is so good. Thanks to all of you for sharing and making this site such a great place.
For me, it was realising that when you are sitting on a position that is working really well, with the market acting just right, then you should stay in that position for as long as humanly possible, and not exit until the market gives unavoidable indications that the move is completely at an end. A good position can run very far, if you let it.
Another breakthrough that comes to mind is the acceptance that the outcome of any trade I take is totally random. It might work, or it might not. All I can do is control my risk, and take profits, if any. This mindset greatly reduced (but not entirely eliminated) the emotional element to my trading. -- M