what was your aha moment when you first started trading?

Discussion in 'Psychology' started by mute9003, Apr 30, 2022.

  1. Bad_Badness

    Bad_Badness

    Manual Trading is using 1960 tech. Basically, fill out a "ticket" and trade it. Algo trading is more than automating the single ticket mentality. E.g. given any trend there are literally 10 of thousands of possible trades, not just a handful.

    Anyone who thinks those cute charts gives them an edge when all the large players are using algo setup generation and algo order generation and algo order management, is living in a fantasy land. Albeit, one propagated by the industry like Robinhood. This is akin to the Mutual Fund with its monthly window dressing and high churn rate, being a good way to leverage "expert" stock picks.
     
    #11     Apr 30, 2022
    Nobert likes this.
  2. savoir

    savoir

    I am aware of that. Oftentimes the question initially asked arises from unconscious incompetence.

    Answering directly serves no purpose and would just keep the questioner in his state of incompetence. Your observation is useful.
     
    #12     Apr 30, 2022
  3. Price goes up, price goes down, my job is to get a piece.
     
    #13     Apr 30, 2022
    carlv123, OBE, KCalhoun and 1 other person like this.
  4. ktm

    ktm

    Picking through fresh SEC filings in the mid 80s (pre-EDGAR days) to see which greenmailers were accumulating stock, then calling in my trades.
     
    #14     Apr 30, 2022
    stargrazer likes this.
  5. wrbtrader

    wrbtrader

    I had a few relatives that worked for professional trading firms or for the exchange (now retired except for one) plus a family friend that worked for a professional trading firm.

    I visited two of them at their office and discover they use "charts" plus they communicated heavily with other traders at their firm that traded different assets...together it influenced their trade decisions.

    That was my aha moment after hearing so many stories online that institutional traders do not use charts.

    Today, those firms have more automation but they still get inputs from traders that still trade the old fashion way plus a ton of research.

    wrbtrader
     
    Last edited: Apr 30, 2022
    #15     Apr 30, 2022
    Darc, comagnum and Rams Fan like this.
  6. SunTrader

    SunTrader

    The realization that so many small, medium and even large traders (Bill Hwang/Cathy Woods are two currently) don't know WTF they are doing.

    And as the old old adage goes, hiking in a back country trail with a friend if a bear surprises us and looks to attack I don't have to be that fast a runner, just faster than my friend.
     
    #16     Apr 30, 2022
    mute9003, NoahA and wrbtrader like this.
  7. mikeriley

    mikeriley

    30 trades this past week (24 Nasdaq 6 Gold)
    using nothing but a CHART, 26 were winners.

    Every night Nasdaq, S&P, and the DOW
    makes a run between 2am and 3am EST
    Sometimes it's a little earlier, but
    there is always a run for 200 to 500 ticks.

    I've talked about this fact on a previous
    thread.

    Some nights I don't get any trades
    until run time. If people can't or wont
    understand these markets are running
    on specific times, it's not because
    they are using charts.

    Everyone has an opinion, but
    yours concerning trading with
    charts is terribly off.
     
    #17     Apr 30, 2022
  8. R123

    R123

    There have been a lot of aha moments trading, but for me two major ones:
    1) Risk control is paramount. You cannot lose the farm if you don't bet the farm.
    The market will always be there tomorrow, you have to make sure you will.
    2) You better know why and what your trading, you do not have to be an analyst, but you need to know more than the basics. For when the unthinkable happens, a market halt, gap, limit close, flash crash, stop jump, etc...., you will not know what to do. During chaos you better know what your holding or you can cancel a long period of profitable trading in a single session, by freezing and getting mowed over or jumping off a roller coaster in the middle of the ride ( have done both , more times than want to admit and have the scars to prove it ).

    These two items greatly reduced big drawdowns and "shock" downs, which then lead to overall profitable and much less stressful trading over the long haul. Good trading to you all.
     
    #18     Apr 30, 2022
    Jzwu2017 likes this.
  9. Specterx

    Specterx

    There were so many crucial epiphanies on the road to profitability that it's impossible to remember them all. One of the most significant ones though was the realization that buying and selling is done by actual humans for specific reasons, not just the product of an RNG or secret algo which can be 'solved'. Lots of conclusions flow from this eg trends and moves are driven by news and fundamentals; every market trades a bit (or a lot) differently; edges come only in certain flavors and exist for comprehensible reasons.
     
    #19     Apr 30, 2022
    comagnum likes this.
  10. tomkat22

    tomkat22

    That I badly under-estimated the amount of discretion in discretionary trading.LOL
     
    #20     Apr 30, 2022