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Hi Peter
Mark Douglas' evolution of a trader fits in nicely here.
"objective (mechanical) to subjective (discretionary) to
intuitive".
A mechanical trader: rule (written) based - once the rules are set
up, you leave them in place for a set number of trades. In
addition, there is no variance from the rules allowed.
A subjective trader: also rule (written) based but can "break" his rules.
In my experience, these rules are broken in favour of exits
rather than entries.
An intuitive trader: trades without rules and trusts that his
intuition will make the best judgement possible in
the circumstances.
I agree with Gwenn that a novice trader's best start is
as a rule based trader irrespective of his personality. Subjective
trading requires at least modicum of knowing we can make money
as traders otherwise "intuition" is merely "into wishing". I won't even
talk about the probability of a newbie succeeding if he moves
straight into the intuitive phase. Yet most of the ones I know of
start this way.
For the record I missed the rule based stage. With benefit of
hindsight, I can say that for myself, I'd have been many $ better of
had I had not.
regards
ray
R Barros
101/25 Market Street
Sydney NSW 2000
Australia
Voice: 61 2 92673470
Fax: 61 2 92673478
E-Mail: rbarros@xxxxxxxxxxxxxxxxxx
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> From: Peter G <ktata@xxxxxxxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: GEN: Discretion vs Mechanical
> Date: Wednesday, August 05, 1998 7:59 AM
>
> RTs:
>
> I have been exclusively discretionary in both stock and futures. However,
> Gwenn Ael Gautier was a strong believer in E.O.D. mechanical systems for
> the first years of trading. We talked some before she left the forum.
> Anyway, any comments about DISCRETIONARY versus MECHANICAL trading?
>
> PG
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