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> A lot of new traders have a toolkit of half-baked ideas for entering
> trades, and pretty soon something looks tempting enough to buy. But it's
> not a plan to trade that entry consistently for 30 trades or 6 months.
> There may not even be an exit plan on the downside or upside. He has
> a Reason for being in the trade (it's not throwing darts) but he's
> not trading with a selection method because the next trade will
> have a different reason. I therefore think that lack of method is
> a big cause of actual non-random losses.
Why would this lack of method be worse than throwing darts? How does it
get him into more losing scenarios than dart throwing? Doesn't changing
trade selection without reason or regular logical thought sound an awful
lot like random action? I agree that this trader has no method, but I
disagree that it is different from throwing darts. I argue that he will,
if he trades small enough to stay in the game, lose costs, no more.
>
> Sure, but that doesn't mean that you MUST have a system in order to trade
successfully. I know many very successful traders who trade a VIEW not a
collection of statistics.
>
> I will be the first to admit that there is merit in mechanical trading
systems, but that doesn't mean you can't trade a FEELING of the market
successfully...just ask Soros....(or Neeson hehehe :)
These successful non-mechanical traders still consistantly apply the same
thought processes and logical arguments to their trade ideas.
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