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Metastkuser,
Traders fail due to one simple
reason ... fear ... not greed ... only fear.
Fear that I will lose money ... or
fear that I will miss the bus.
This sentence above sums up the
entire philosophy of all the books put together.
My very very humble
opinion.
----- Original Message -----
Sent: Tuesday, June 14, 2005 9:54
PM
Subject: [EquisMetaStock Group] Why do
traders FAIL?
I have a question (unrelated to Metastock) for the
experienced traders
on this forum.
I have now read a dozen books on
trading -- not the foo-foo books that
promise $10M in the next trade, but
ones by Tharp (my favorite),
Chande, Le Beau, Stridsman, Elder, Covel,
Schwager (and O'Neil,
Link,...) and a couple of Tharp's IITM publications
on money
management etc. Will get to Kaufman next. And of course every
issue of
Roy's MSTT which are simply marvellous.
I've put a couple
of hopefully positive expectancy systems together
(discretionary at this
point so it's not easy to use the system
tester). The systems have four
stages: 1) setup (to identify market
trend and stock trend but not entry),
2) entry (looks at timing), 3)
exit and 4) money management. I have spent
quite a bit of time on 3)
and 4) because I believe they hold the key to
being a successful
trader. I use volatility as a significant determinant in
all 4 stages.
So I've done my homework. The odd thing is that none of
this has been
difficult to understand -- not just for me but I'm sure for
anyone who
takes the time and has some patience.... and now I am
confused.
1) Why do so many traders fail? Have they not read these
books?
(Please don't reply that they are undercapitalized and/or they
have
the wrong psychology for trading).
2) What do reading the next
50 books buy me (besides the enjoyment of
reading them)? Surely the law of
diminshing returns kicks in right
about now.
3) At this point, what
would the typical causes of failure be?
4) This is a Metastock forum.
Can someone point me to a more
appropriate forum for this type of
discussion (I have not found one).
Thanks!!!
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