Amazing how many people are duped on here by a total idiot posting a crappy slogan and a bunch of phony riddles.
It is obvious to me, more experience you have, more dedication to backtesting, more refining of your skills, the better you become. Too many concentrate on getting the most profits and little to no regard to drawdown, losing percentage, breakeven. Too many think that reading some book is all that is needed, very few books are written by millionaire traders, why give away the nuances that took so long to gather for a lousy few crumbs of royalties in books? If you have a huge ego, donate a ton of money to charity. Sizing comes down to losing percentages, and reward to risk, and of course huge amounts of backtesting, and even that isn't always enough. Anyone shorting Crude Oil a few years ago starting at $50, unless you had a hedging method with it, you lost heavily cause all the backtesting in the world would not have helped with all time new highs. Hopefully as one's knowledge expands and the years pass, the greed factor within changes to the other flip of the coin and concentrating ONLY on risk management, getting in perfect is really nice, but even nicer if you understand what you do AFTER you hit the mouse button. Smooth equity curves equates to steady blood pressure equates to better health. If you want to stay in this game a long time, learn to sit on your hands and wait for perfect signals. Good Trading All.
+1 Just look at all this wasted bandwidth on some clown's three-card monte scam of purported "wisdom". Both amusing and depressing at the same time. No wonder most traders are losers.
-------------------------------------------------------------------------------- Quote from macattack: For example a child can look at a chart and see that price is going up. An "experienced" trader on the other hand may look at that same chart and see that his MA's are crossing, and the slow stochastic is below the fast stochastic, and Woodie's CCI is at the zero line, etc, etc, etc. -------------------------------------------------------------------------------- And you ask the child whether they would buy or sell and they most likely will choose the obvious (buy) for the obvious reason (because it's going up) and end up with a very good trade. [/QUOTE] This is brilliant and so obvious to me. FYI I am about as new as they come... this is what I try to do. Where I fail is when I let myself get in my own way.
Here is my answer on what is required to take money from traders on a daily basis: Having a consistently losing trader on the other side of your trade. You must visualize where the consistent loser is present in the market. Since it is a zero-sum game the loser must be there to pay you your profits. If you can see where the losing trader is present in the charts then you can profit from there mistake. And keep in mind the window for this opportunity is slim when it does occur, since there is very few who will make money off it.
The most obvious thing is that most people will lose money. Many newbies fail to understand this fact.
the edge is learning how not to lose,winners will always come,if you can learn how not to give it back,your acct will grow,that's the most important edge you can have
It's unrealistic to expect to never lose. The best you can do in this regards is to be a great loser and not give much away when your position is not correct.