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Super,
Yes, thanks for the refresher. I also read Etzkorn's editorial -- I
can't post the link without Roy's permission.
Still, I'm struggling to understand the high failure rate. Seems to me
that once a trader has a trustworthy system(s) with positive
expectancy and knows which market conditions are suitable for trading
the system(s), trading becomes routine and somewhat boring (which is
good).
To be frank, I'm concerned at this stage about what I don't know. Is
there a secret affliction that dibilitates traders that I am unaware
of? Will it get me (even though I've done my homework -- bookwise and
actual trading)?
--- In equismetastock@xxxxxxxxxxxxxxx, superfragalist <no_reply@xxxx>
wrote:
> Andy,
>
> The answer to your question was in Roy's newsletter about two issues
> back in the discusson on the using daily and weekly charts to find
> market bias.
>
> Read the treasure map story again and ask yourself how many times
> you've seen exactly the same the problem with former co-workers,
> employees and friends.
>
> No matter how many ways it's stated that story sums it up.
>
> For those who don't subscribe to Roy's newsletter but should, I've
> excerpted that one paragraph. Roy's newsletter is not just about how
> to code, or the code for great indicators, or excellent trading
> systems--sometimes it has great psychological lessons in it too. So
> here's the explanation one more time of why 99% of want-to-be traders
> can't make money with a proven simple trading system.
>
> "The way I explain it is if you had a newsletter that was uniquely the
> best newsletter ever written, with an undeniable track record on how
> to find buried treasure, only 1% of the subscribers would be able to
> follow the map to the treasure. Some would declare the map invalid
> before ever leaving the house, some would injure themselves while
> trying to leave the house, some would have to draw all over the map
> confusing the directions and sending themselves to the North Pole, and
> some would lose the map before getting to the starting point. Of
> course, others would simply get distracted along the way and wind up
> at the International House of Pancakes for breakfast."
>
>
>
>
> --- In equismetastock@xxxxxxxxxxxxxxx, "metastkuser"
> <andysmith_999@xxxx> wrote:
> > 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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