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Hello robert,
rcwan> Absolutely even though it is the source from hence all indicators originate.
Discretionary trading is nothing more than a game of chance, much like
gambling. Mechanical trading whose roots are founded from
discretionary beginnings are continually evolving towards becoming a
scientific solution. Discretionary trading on the other hand is
continually evolving towards becoming mechanical. The benchmark of
discretionary vs. mechanical are never to be compared, because one
camp sees no value in keeping accurate statistics. Otherwise reality
could be exposed clearly as a presentation of numbers which back the
facts. What ever that outcome may be.
Clearly discretionary trading has its place and serves its purpose.
Granted also this type of trading is easily tractable and predictable.
All one has to do is to observe the most frequently replicable
reoccurring price movement of one of the most popular traded contracts
namely the E-Mini. Just look at a chart and you will see where the
majority of the small scared traders who have no understanding of the
markets place their risk limits. These limits more than likely are
primarily mental rather than physical stops placed in the markets.
These mental stops and the urgency to execute them as the delay of
market data comes to their computer terminals after the fact. Just add
fuel to the fire of their psychological state and emphasizes the
vulnerability which they are feeling as they exit the market any cost.
As I watch the slaughter unveil itself , I fully understand exactly
what discretionary trading is all about. The markets become a playing
field of which just as any other bookie who is astute at his job can
make odds.
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Best regards,
Mark Brown mailto:markbrown@xxxxxxxxxxxxx
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