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Trading is like driving a car you always keep control. The minute you lose
control you get out of that trade.
You never hope a trade you can do this mentally or use a stop then never
move the stop unless its to reduce risk. I prefer to have discretion with
my stop so I use a mental one because my time frame is so short. I think
its so important enough can not be said about the market you trade. You
need to trade a market that matches your risk as an individual in a
positive way and have the feeling your over capitalized. Being right is
more important than the money and you can be right when you take a loss and
wrong when you take a profit. My greatest weakness is not riding the winner
and that has hurt me much more than any loss I ever took. Trading is like
golf you never stop learning or trying to learn. Because of my weakness of
riding a winner I trade very short term and I currently changing markets to
trade.
Robert
10/20/98 -0400, Wong wrote:
>Thank you all who wrote to me, either privately or through the list. I
>appreciate your help.
>
>However, my previous e-mail message was not to complain, whine or whatever.
> My point is: to be successful, you need to:
>- know the market (Dow, or grain, or precious metals etc)
>- know the particular instrument you're trading (IBM, pork bellies etc)
>- have a good trading system, with all its good indicators etc
>- have good money management
>- have good discipline
>- etc etc
>(All these points have previously been mentioned by other members in the
>list.)
>
>It seems that the group has been dwelling mostly on designing the best
>indicators and systems. That's all very well. But should'nt the group be
>dwelling on (discussing) other important factors such as good discipline
>and good money management as well - not just on a theoretical basis, but
>how they actually overcame their initial trading "undiscipline" or bad
>money management?
>
>Would anyone want to share their experience with regard to trading
>discipline, how successful or unsuccessful they have been, and their
>struggle against temptation of greed and fear?
>
>It's common sense, for example, to take profit and to have a stop-loss. To
>be very frank, how many of the us out there in the group can adhere to a
>strict discipline without deviation?
>
>I understand that 90+% of people lose money trading futures and options.
>Can we assume over 90% of the members in the group are making profits, not
>just any profits, but HUGE, HUGE profits? MB and some of the others are
>very good, but how many of us are like them? (How many can climb Mount
>Everest? How many can run a 4-minute mile? How many can shatter world
>records?)
>
>My own experience is that given even a so-so system, I could survive when I
>tried not to violate common-sense adherence to taking profits.
>
>Anyone want to take up the challenge and start discussing about his/her
>personal experience regarding his/her trading discipline?
>
>Wong
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