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I agree nothing replaces the real thing. But one thing simulated trading
would accomplish is the fact without the emotions trading is not that hard.
It proves this to the individual it can be done and the emotions is where
the real problem lies. Then you start to understand what leverage is and
capitalization. You can trade a mini oat and win can you take that same
winning formula to the S&P? That's why all the harp about indicators is
very important but if the problem is the individuals emotions then your
still at ground zero with a perfect indicator or system. Its what happened
to me and I had to accept many short comings about myself. Then I had to
capitalize myself and trade the right markets that match my risk tolerance
levels. I was alright in a small market but the big market I let my
emotions of fear take control. My fear would rise and my intellect would
diminish. I could take that problem and blame it on an indicator, system or
lack of the right one. OR I could face me and the truth the hardest thing
is to admit your short comings in regards to trading. I started back small
and was more in tune to being right than worrying about the money and right
about the right market to trade and the correct approach. I'm always
looking for new tools like indicators or systems but until I solved the
emotion issue that part was useless. S&P still scares the Sh.......t out of
me so I don't trade it now maybe later when it claims down but being + is
all that really matters. All the best indicators known to man is not going
to help with my fear with the S&P but that fear will keep me alive to trade
another day.
Robert
At 01:09 PM 10/25/98 -0700, Earl Adamy wrote:
>More important than the financial loss, is the psychological loss. Two $1000
>losses on a $10,000 account is 20%, on a $50,000 account is 4%, on a
>$100,000 is 2%. Lose 20% of your account and you'll be afraid to pull the
>trigger again. Lose 2% of your account and you may be a bit chagrined, but
>you can keep on pulling the trigger.
>
>Earl
>
>-----Original Message-----
>From: FelixTY <FelixTY@xxxxxxxxxxx>
>To: Traders <traders@xxxxxxxxxxxx>; Omega <omega-list@xxxxxxxxxx>
>Date: Sunday, October 25, 1998 9:10 AM
>Subject: Trading discussion
>
>
>lifestyle? The vast majority of traders start with small accounts, ie,
>$10,000 or less. This is why the vast majority of traders blow out in less
>than a year. You must be well capitalized to trade futures, due to the
>risks, and your likely lack of experience.
>
>
>
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