But broker will become richer not the trader if a stoploss is treated as target. Also the same issue of hitting the stoploss frequently may be there too. The skill of a trader is not just to set a smart risk reward ratio but also to workout a way to reduce the hit rate of stoploss. Statistics is just one of the trading skills. One of the way i found from my experience to control the hit rate of stoploss is momentum strategy, which is rate of price action or in other words timely price action. There can be couple of other ways which we are yet to discover. Thats why i keep saying analytical skill is last but the least and to embrace creativity. Above all the trader has to develop business attitude only then approach or direction of efforts will transform. Trading is business which needs a philosophical mindset. The universal business principle or philosophy is "Never lose your money." Those who deny to treat trading as business will not adopt any principle and put efforts in inappropriate direction and so will be the results. Its so obvious yet not so obvious to recognise that trading with analytical skill is hard. Its exactly like trying to swim with bicycling skill. We can imagine how hard it will be, right ? Trading is a psychological skill with a philosophical mindset. Trader is a philosophical person. 99% of traders struggling due to lack of appreciation for philosophy and psychology.
As a discretionary chart trader there are two components: 1. You - The self 2. Information - Technical What is necessary? To understand and to simplify. 1. You - The nemesis 2. Information - Create a set-up A simplistic binary type logic - yes/no 1. You - Without a clear and specific set-up your brain will automatically try to find one for you. 2. information - How does your market operate? Thought containment - Find a method of containing your trading thought. Without this, trading will run riot within your mind.
More @wtfauoa type psychobabble. Trading is about finding an edge and exploiting it without deviation. It isn't about finding ones "true self".
100% true Because 99% of our mind is subconscious which means 99% of our mind functions in auto pilot mode. (Based on research by neuro scientists) The purpose of meditation is to conquer the subconscious mind and take full control of mind and life. This is why what is obvious to some aware people is not so obvious to many others.
Hello, rajesheck. The question of what is obvious is somewhat irrelevant. As a question, "Why is the obvious not so obvious?" It's just a question. As I've mentioned above, your brain automatically wants to arrive at an answer. I am not a lecturer, and I wish you all the success.
If you can't answer this question you're likely far from seeing the obvious that becomes so only after you can answer the first part of this very question: why?
The challenge is majority of people are unaware that our mind is predominantly operating in auto pilot mode. The title of this thread is meant to stir the awareness among traders here. Learning psychology, meditation and philosophy are a some of the ways to conquer the subconscious mind.
I will not reply to every line, as bit busy, so I will make it short and sweet. Forget all you think you knew about trading, as the basis for all of your information is flawed, in that, no matter what you think you know about trading, the fact remains that price can, and will, do anything at any time. So, Time, is of the utmost importance. Before you decide to put your money at risk, it is best to have come up with a simple process, and I say process meaning "clearly identifiable steps that can be executed at will, over and over without any preconceptions. The fact is, if you are sloppy and do not give the required attention to trading, then the chances of you getting caught out, like most, are very very high. It is a fools game, but only if you are a fool. So, talk is indeed small, and it will always be the same on these sites, just the way people are. As for Options, yes, it has been my experience that Options can be successfully daytraded, but only the likes of AAPL and other highly liquid stocks where the bid/ask spread is not too much. Of course, you can be left sitting high and dry with Options, so best to only trade them during "normal" days. Just remember you are talking to someone who says the only thing I know, is that I really know nothing, and I really mean that