Besides the obvious prerequisite for the successful retail trading, that`s still being discussed in this one of the greatest ET threads, there`s another very very important aspect, after you got the first one straight.And that is.........What is it? Let`s figure it out.I`ll give my own answer when someone gets it!
Give a hint what the so-called holy grail prerequisite of trading is, in your opinion, And then we can leave that to further analysis, Risk management, cut losses, run winners yadda yadda, -- if it were that easy, everyone would be printing money out of their butts. All we hear about are the never-ending continual losses people suffer. But you are right, sometimes the most important things or lessons are right in front of our nose, or face. But they usually fall on blind eyes and minds. Trading like a combination of the Bible, The Matrix, Indiana Jones, Moses, National Treasure, Showgirls, paintings, science, etc etc Most traders are in Disneyland...riding It's a Small World -- while they should instead be in a War zone as the General. Most people are getting cross-eyed staring at charts and past charts all day trying to decipher the future with indicators and what not going crazy. or programming their automated money machine ATM computers.
The so-called prerequisite in the original thread was, that unless you get the entries straight(meaning that after you`ve entered - your position should immediately take off in your direction), without another very important one, the first one is hardly helpfull, in the long haul. I think it`s obvious.
Yes, sounds like the two guards problem. “You are a prisoner in a room with 2 doors and 2 guards. One of the doors will guide you to freedom and behind the other is a hangman --you don't know which is which. One of the guards always tells the truth and the other always lies. You don't know which one is the truth-teller or the liar either. You have to choose and open one of these doors, but you can only ask a single question to one of the guards. What do you ask so you can pick the door to freedom?” If one can work through it without the help of a spoiler, the not so obvious becomes less not so obvious and much more obvious. More is more until a point where less is more. Less is more until less is less. Less is less until more is less. More is less until more is more. Making sense of the above can make the not so obvious into it’s opposite. Until then it remains as it is, not so obvious.
This is a common interview question for software jobs You ask one guard what the other guard would say is the door to freedom and then you pick the other door. This is a question of double negation logic. -(-x) = +x
Wrong, only makes you lose slower and for instance SL to close, can actually make you lose more often and faster.
It is logic-puzzle double talk, and does nothing to help trading. I remember that damned puzzle or a variation thereof, and cannot recall the solution. It is like the problem of "When does 10=8?" or "How many Energizer bunnies does it take to evaporate the world's oceans, assuming it uses 2 D-cell batteries?". Seriously, what does it all have to do with risk management?