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Dave Pyle mentions about 5 stages to trader maturity, the last 2 stages
being discipline and money management.
Robert Cumming mentions money management.
Very true. We all have been seeking the HOLY GRAIL - perfect trading
systems that will make us millions of dollars. Are we chasing an
impossible dream - what with the perfect indicators and perfect systems?
>From my personal experience trading equity and futures options, sometimes I
had paper profits of 5 times or 10 times. Even the indicators and systems
told me to get out and take profit. Greed took over, and I did not get
out. Then indicators and systems told me to take a stop-loss. False hope
won, and I continued to stay on. Eventually, I not only did not have 1
cent of profit, I even lost my original investment capital.
This happens every year. And every year when I do my tax returns, I swear
I will not be greedy or not so falsely hopeful again. Each year I'll make
exactly the same mistakes.
That's TRADER DISCIPLINE for me. That is, I'm not mature enough to control
my instincts - greed and fear. Not yet, even though I know I should.
Does anyone else in the group have similar problems?
Maybe we should dwell more on trader discipline and money management rather
than just perfect indicators and systems.
Wong
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