What is the single most important element in trading?

Discussion in 'Trading' started by darvasboxes, May 5, 2005.

What is the single most important element in trading?

  1. Psychology/Proper Mindset

    72 vote(s)
    38.5%
  2. Stock/Market Selection

    10 vote(s)
    5.3%
  3. Entry Techniques

    14 vote(s)
    7.5%
  4. Exits

    20 vote(s)
    10.7%
  5. Money Management/Position Sizing

    56 vote(s)
    29.9%
  6. Luck

    15 vote(s)
    8.0%
  1. mustang

    mustang

    I think that exits are the most important element in trading. It's all about exit strategy and risk management.
     
    #21     May 13, 2005
  2. The "horror" of knowing that if you don't make it ... you'll have to work for someone else's dream.
     
    #22     May 18, 2005
  3. Learner

    Learner

    The MOST important element has not been mention in this thread. :) That's why there are so many lossers in this game.
     
    #23     May 18, 2005
  4. OK, I give up. Tell us,

    Ursa..
     
    #24     May 18, 2005
  5. I loved most of the voted answers .. they're wrong!

    Nearest thing to 'right' is Market Selection.

    The most important element: you have to research, learn and know your market. Who actually looks at the data of a market and even begins to ask the logical questions they need answered? And your asking goes on being refined as you go along researching and test trading. This is a professional and institutional approach.
     
    #25     May 18, 2005
  6. mhashe

    mhashe

    No, the voting is correct.

    How many times have you been right and still lost money?

    Psychology and money management are way more important than the market you trade. If you have those mastered, market selection is irrelevant.
     
    #26     May 18, 2005
  7. nitro

    nitro

    When the numbers are starring you in the face, you will know it.

    And then you come back to a thread like this or the thousands of like it on ET, and realize that your arm is as important as your leg, and your eyes as important as your nose, etc.

    Being profitable requires enormous work to hone your craft or system, and the markets love to probe for weakness no matter what it is. That's why no finite list of "good qualities" will ever encompass what is required.

    Most of the answers given here are looking at it the "problem" upside down. When the problem is turned right side up, all the holes get filled naturally, with the exception of possibly Money Management, or how to change bet size based on edge. That is still an unsolved problem for me because I still don't understand how to extract a probability of success for a given trade from my systems. That probably means fixed fraction as a short term solution, but I am not sure...

    nitro
     
    #27     May 18, 2005
  8. Perseverance
     
    #28     May 18, 2005
  9. The most important element of trading is Self Control

    Self Control - to maintain discipline
    Self Control - to only take the right setups
    Self Control - to let profits run
    Self Control - to cut losses
    Self Control - to plan a trade
    Self Control - to trade a plan
    Self Control - to use proper money management
    Self Control - to control yourself - Self Control
     
    #29     May 18, 2005
  10. Are you going to tell us that is having forgotten to subscribe ProfPerfect's trend inventions? :confused:
     
    #30     May 18, 2005