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POMPATIS wrote:
> I would like to insert the notion of standard defenition. in my mind a
> discretionary trader uses a "METHOD", and a trader using a strictly defined -
> no room for descretion - approach, is one who is using a "STYSTEM".
So, in other words, a "method" trader uses discretion, whereas a "system" trader
never does. First, we need to be clear what we mean by discretion here. I
assume that, with the overwhelming majority of traders, that the entire process
is discretionary, in the normal sense the term is used - so this can't be what is
meant here. The same would hold with method - surely even the most remotely
successful trader uses a method or methods - unless they are merely acting
randomly. Maybe it's like this - some traders choose to faithfully follow rules,
while others make a lot of them up as they go along. This doesn't sound quite
right, though. In order to be fair to this type of trader, perhaps we ought to
characterize him as "intuitive" as opposed to "systematic." Still, though, the
systematic trader may be quite intuitive in the design of his method or system -
it's even hard to imagine getting good results without using some of this
talent. How about - trading intuitively rather than systematically - this might
take care of it.
So what's really the point here - I'm not really sure - I guess for the most part
I'll leave that up to others who may wish to elaborate. However, a couple of
points are worth mentioning here. Is the person who trades intuitively a better
trader than one who trades systematically? This may differ, but results are what
counts here. Is the former more of a "real" trader? This would be nonsense. Is
one approach better than the other? I guess this depends to a large degree on
the individual - although I would tend to agree with Peter and say that,
theoretically speaking, the systematic approach would be more sound, whatever
works best for you is the right way to go. Of course, finding this is a never
ending task.
Regards,
A.J.
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