Why do 5% of Traders Win?

Discussion in 'Psychology' started by oldtime, Feb 18, 2012.

  1. Good insights (all of the prior posts you made here), IMO.:)

    The only issue I have as a retail trader, is that while I agree there are many good edges present in much lower time scales (superior to higher, such as autocorrelation, for example), the practical issues, like getting filled, size, slippage, comm. etc can supersede theoretical edges based on back-testing historical data.:(
     
    #171     Feb 21, 2012
  2. cornix

    cornix

    Yea, playing failed patterns is quite profitable art by itself.
     
    #172     Feb 21, 2012
  3. achilles28

    achilles28

    Thanks. No magic. Just years of hardwork.
     
    #173     Feb 21, 2012
  4. achilles28

    achilles28

    Very true. And there's so much fertile ground there. Indicator failures (MA, RSI, Bollinger etc), pattern failures (h&s, triangles, flags, wedges etc), candle pattern failures (inside, engulfing, dojis etc), classic TA failures (trendline, 123, support and resistance), price action failures (hh ll, lh hl etc).
     
    #174     Feb 21, 2012
  5. cornix

    cornix

    As I specialize mostly in price action, can confirm that failures of classic price action patterns can be very fruitful, especially when reversal pattern fails during a strong trend.

    I posted examples of such trades in my journal last week.
     
    #175     Feb 21, 2012
  6. achilles28

    achilles28

    Ya, exactly. We trade similar setups....Cheers :)
     
    #176     Feb 21, 2012
  7. cornix

    cornix

    It's always the same price action on the chart. Just not everybody sees it. :D
     
    #177     Feb 21, 2012
  8. achilles28

    achilles28

    haha thank God for that :p

    Traders see patterns in every candle, where often, it's simply random. It trips them up... etc ;)
     
    #178     Feb 21, 2012
  9. cornix

    cornix

    Yea, and no secrets, all it takes to distinguish randomness from what contains edge is screen time. Just a lot of screen time. :)
     
    #179     Feb 21, 2012
  10. achilles28

    achilles28

    +10
     
    #180     Feb 21, 2012