|
PureBytes Links
Trading Reference Links
|
I wrote:
> And, if you are on the SO list, you have heard from an insider that
> there was nothing wrong with his system or his research and he blew up
> for "psychological" reasons. A system is worthless if you don't follow
> it. :-)
Okay, okay, I disproved my own point. Psychology DOES matter. But rather
than books or intensive therapy, I think psychology for system traders
can be reduced to a couple of simple rules that MUST be followed.
1. Take EVERY trade the system offers and NO trades it doesn't.
2. Trade small enough that you aren't afraid to do #1. Are you afraid to
lose a dollar? Probably not. Are you afraid to lose a million dollars?
Probably. So, somewhere in between a dollar and a million is a risk you
can afford without losing any sleep.
3. See #1 and #2.
4. If you can't follow #1, #2 and #3, find a new line of work.
--
Dennis
|