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I don't want to bore people by coming back to the old paper trading
argument but I think it is important. It seems to me that as we all would
agree that back testing a mechanical system by using TS is essential then
how can back testing (i.e. paper trading) any system or method of trading
be wrong. I think it is dangerous to tell someone who has not traded
before to just dive in. Even if they trade small they can still end up
needlessly losing money and if you are limit down on a 1 lot for two or
three days you can still lose a respectable amount of money. As so many
have said before, it is not going to prove to you that you will make money
in the markets but it sure as hell will tell you very quickly if you wont.
I would suggest that anyone new to the markets should paper trade until
they are blue in the face. It will force them to concentrate on price
action and instill some discipline if nothing else.
Just my point of view.
Philip
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> From: Stan Katz <skat@xxxxxxxxxxxxxx>
> To: INTERNET:omega-list@xxxxxxxxxx
> Subject: Trading Advice
> Date: 29 May 1998 18:21
>
> I recommend the following books about trading (as opposed to technical
> analysis): "Computer Analysis of the Futures Market" by LeBeau and Lucas;
> "Street Smarts" by Connors & Raschke; "Trading for a Living" by Elder.
If
> you want to learn about Technical Analysis, try "Technical Analysis of
the
> Futures Markets" by Murphy. Avoid other peoples' systems; don't try
paper
> trading; and concentrate fully on how much you have at risk (and limit
> yourself to a specific dollar risk in every trade) instead of
concentrating
> on how much you can win.
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