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The most important books to study before trying to
build any trading system are those on mathematical
logic, statistics, etc.
most people did a course or two in college, etc.
on logic (easy credit) :) BUT mathematical logic
is something that tells you how logic actually works
and it can give you a basic framework to correctly
deal with facts and bull. The hard part is how to
integrate something like that into your mind :)
Personal experience and seen from other successful
pros in trading told me that those who can accept
the truth from the data only and accept nothing else
WILL not cooperate well with those people who
believes in illusions and bull. Because poking
the mistakes in the other people will lead to
unhappy exchanges :)
Richard Dennis came back with a bad timing, his model
failed to handle the change in behaviour of the
index future market. May be there are other reasons,
but what do I know.
My own model evolved and changed when the market's
underlying statistical behvaiour changed in year 2000.
A huge warning sign that some mechanical models will
be wiped at that point in time.
It may not be necessary at all to learn something
like mathematical logic - because some people will
just be able to deal with facts only after being
beaten badly by the market. Some may achieve the
same through studying the art of gambling in casinos.
The bottomline is so simple - how not to get
wiped and how to protect your capital. The profit
will take care of itself. The worst scenerio of
that is that you make nothing - and that is the
likely outcome.
BTW, most of the people whom I've met claiming
they have a system of this and that making a few
points here and there in the sp and nd are all
tossed in 2000. They are all trying to seek a job
now. Aside from having their TS2000 sitting there,
wasted their time and effort on nothing, and
losing most of their life-time saving, they are
still alive. Interestingly, those who trade
by "guts" did not fail that bad last year in
comparison ...
-Lawrence Chan
--- lazar223@xxxxxxxxxxx wrote:
> Lawrence,
> If you answered him in the positive, then what
> books, websites, etc.
> would you tell him to read to influence his
> thinking?
> Additionally, could you expound a little more on
> your comment :
>
> people NEED to get burned before learning they are
> wrong. Really
> logical / scientific people who can admit their
> thinking / ideas could
> be screwed up are rare
>
>
>
> Lawrence Chan wrote:
>
> > John,
> >
> > I have read the other replies already, so
> > this message is more of a summary reply :-
> >
>
=====
Lawrence Chan http://www.tickquest.com
Innovative Analytical Software for Trading Professionals
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