Why would anyone share their secrets?

Discussion in 'Professional Trading' started by Batman28, Nov 10, 2007.

  1. I think the proper meaning of keeping losses small doesn't mean literally, but rather, relatively small. Risk is usually directly correlated with reward...

    So yeah if I am swing trading 2-3 contracts of Wheat, it is silly to say I will bail out of a trade if I am down $100 (literally small).....what I need to keep small is the amount relative to the size I am trading, as well as to how much reward I am aiming for. Maybe something such as being down a certain % of margin on the trade is more appropriate.

    Sorry about the Gilliam Curve thing, by the way..just a little joke from a thread I started yesterday.
     
    #11     Nov 10, 2007
  2. neke

    neke

    Actually "look before you leap" is a greater "secret" than "keep your losses small".

    I agree skill is borne out of experience (of the good, the bad, and anything in between) + some innate or acquired ability (perception, persistence, etc). While anything can be learnt, the learning curve is not the same for everyone. If it will take a lifetime to master enough to break-even, then there is probably no point trying.
     
    #12     Nov 10, 2007
  3. No serious trader posts actual details of their trades on Net Forums.

    Especially if one is doing something creative.

    Most of the people posting detail here...
    Are doing some simplistic variation of:

    (1) Momentum trading

    (2) Technical analysis

    #1 is very hard to do...
    #2 is completely worthless.

    I actually feel bad for n00bs trying to learn at ET...
    Because > 90% of the crap posted here is worthless...
    And a n00b has no way of differentiating truth from falsehood.

    Conversely...
    It's actually VERY EASY...
    For the 5% successful Pros... to spot the other 5% successful Pros.

    Most people do not even seem to understand...
    That ET exists for the SOLE PURPOSE of selling ads to brokers...
    So the brokers can fleece the wee lambs.
     
    #13     Nov 10, 2007
  4. I agree with you my man. ET is here to earn money from sponsors, and for me to have a good time cutting up with other traders.

    Trading is simple, but not easy...but then again, it really depends on how you trade. Some people have some very complex stuff going on...so maybe it ain't so simple...

    But what I do is relatively simple...in fact many times I'll catch myself trying to make it more complicated than it needs to be...out of boredom....

    Having open positions on, however, is anything but boring...to me at least.
     
    #14     Nov 10, 2007
  5. rwk

    rwk

    This is actually one of the more insightful posts I have read on ET. There are good ideas here, but not many, and they tend to slip by the newbies unnoticed.

    Regarding trader skill, I do mostly automated trading these days. I suppose somebody could say the skill is building and testing the system.
     
    #15     Nov 10, 2007
  6. Because when I was starting out, many people went out of there way to help me.
     
    #16     Nov 10, 2007
  7. Care to elaborate on #2 and why its worthless?
     
    #17     Nov 10, 2007
  8. Technical analysis is worthless to those that fail to profit from it.

    Have found no other explanation for such comments.

    Anek
     
    #18     Nov 10, 2007
  9. a) There are a large number of studies showing little value in classic TA when subjected to multiyear studies across markets, across many different parameter settings for TA indicators/methods.

    b) The opposition, TAphiles, have little to prove that TA works, outside of anecdotal reports. In addition, even the CTAs (and many hedge funds) who are supposed to be the experts, struggle to perform well, examining most CTA annual performance reports.

    c) I side with a) over b)
     
    #19     Nov 10, 2007

  10. Sure, you can make TA into something completely irrelevant and negate any edge you may have gotten from its use by making it either too complicated or too distorted....

    But, having said that-

    Try convincing anyone who makes consistent money using TA that TA doesn't work....I don't think you'll get any anti-TA converts.

    Just because studies don't find it to be true....well, hell back in the 1800's the medical community used to say that their studies indicated TB patients should be kept in damp, moist caves so their lungs could heal. No amount of studies can refute reality. Do studies take into account the myriad methods of money/risk management, etc? There are many things besides just TA that are used to make one a succesful TA based trader....I imagine the same can be said of anything whether fundamental, astrological or whatever else is out there.
     
    #20     Nov 10, 2007