1)
A lack of professionalism, self-confidence, self-esteem and
discipline. At the opposite end, arrogance that because they read a few books
they know everything. Laziness - a feeling that they are somehow “owed”
success. Also, over-complication, a lack of perspective, too much back-testing,
not enough walk-forward testing/real-time practise. The pitfalls are many…!
2)
More theory, less time actually doing. Sounds like you’ve
read enough books to be able to put together a workeable strategy by now!
3)
Over-theorising. Lack of dedicated action.
4)
There are plenty of experienced traders around here that can help
you out with just about any question.
From:
equismetastock@xxxxxxxxxxxxxxx
[mailto:equismetastock@xxxxxxxxxxxxxxx]
On Behalf Of metastkuser
Sent: Tuesday, June 14, 2005 5:24
PM
To: equismetastock@xxxxxxxxxxxxxxx
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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