When do you stop refining?

wdscott · May 6, 2006

Quote from Johnnie T-Bond:

My feeling is that when you have developed a system or method that works profitably and consistently you don't need to constantly refine it. You simply need to practice it with greater and greater size positions as you are able to adapt mentally. Its like muscle memory in sports. If you keep changing the way you hit the ball, you don't develope the muscle memory to keep playing well. Think about it. You can gain greater skill and experience as you grow but you should keep the same basic system imbedded in your subconscious mind so that it becomes second nature to you and you simply react to market opportunities in the zone. If you keep refining your system you can lose your ability to react quickly and efficiently because you are constantly over-analyzing instead of trading. Over-analysis equals paralysis. The number of contracts that you trade is the real determiner of wealth - not how near perfection you can get. The real key to big money is size, not trading perfectionism. I'd much rather be a so-so 100-lot trader who grabs 2 or 3 ticks consistently than a fantastic 1-lot trader who buys the low of the day and sells near the high. Do the math. Size makes the big money, not skill. Be satisfied with only a good system and develop the mental toughness to trade bigger and bigger size. Buying the low or selling the high of the day is for amateurs to dream about.
More...

Exactly right. I couldn't have said it better!

Dave

Log in or Sign up

When do you stop refining?

wdscott