I just love the way programmers and quants keep suggesting that that a real life human trader will be all but extinct. Could it be the sentient algorithm could actually find an exploitable edge over their binarymechanical counterpart BECAUSE they are human? Edges come in many forms, but as far as trading absolutes; no clearer examples can be given than that by Atticus. **Whatever happened to the spell check?**
The better your edge(s) the more trust you have in the market. The more trust you have in the market the stronger your mental part is. Your edge is how you perform and what you do. What you do corresponds to how you judge yourself and your overall mental outlook on your trading future. The whole issue of pyschology is irrelevent when you can make money and have trust in yourself. The reason the pyschology forum and overall topic is so popular is because everyone who is looking for better pyschological success has no edge. They either use a mass amount of indicators or have no idea how to read price action past two sequences they have memorized and they sure do not know how to examine the different characteristics of different stocks. There are those who make money and those who can't which make endless posts on this stupid disappointing website trying to think their way through their problems.
If you have an edge, you can automate/trade it mechanically and metal state won't matter. Useless garbage/flame war threads outweigh method threads 500 to 1. There's really almost nothing of substance on ET.
No, the reason why most traders fail is because they think they have an edge when in reality they have none. Psychology is just a sry excuse for pikers who have no real edge. I do arbitrage for a certain instrument day in day out and have been consistently profitable for the last 3.5yrs, psychology has nothing to do with my trading.
nodoji That was not intended as an advanced warning, it was a lesson. The savings and loan crisis was a lesson also and well dated. Did many learn from that lesson? PS: for your info, this sub-prime is sort of old now.
Most things that are measurable are not important, and most things that are important are not measurable. A summary of what is your edge: <a href="http://www.sweetim.com/s.asp?im=gen&ref=11" target="_blank"><img src="http://content.sweetim.com/sim/cpie/emoticons/000202B3.gif" border=0 ></a>
this statement is false...."he will lose" . I for one have seen people make money without an edge, without a mental game and without so much as knowing what a stock was...peace
But it was advance warning when that article was originally written (2006). I remember we refinanced our house back then and it had more than doubled in value in a a little over a year and I thought, Whoa, that's not right, something's gotta give.
nodoji Good call you did back then, congrats. I remember my bro saying his house in Biscayne Park, FL went up a 100k from the previous year. I reminded him to make sure when it comes back down to call the insurance and the county tax personal to lower the insurance and tax bills just as fast on the downstroke when prices reverse.