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Hi Ramon,
My view on this is that your 'subjective' trader learns more about trading
and comes up with mores rules that may sometimes override some of his
existing rules. The inuitive trader has internalized the rules so that he
can act without consciously thinking about them. But the rules are still
there.
In Sept 95 TASC Robert Krausz said: "I've found that when I speak to people
who say they aren't mechanical traders, and certainly when I speak to them
under hypnosis, I've found that there are quite a few rules involved."
-----Original Message-----
From: ramon <rbarros@xxxxxxxxxxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Tuesday, August 04, 1998 6:35 PM
Subject: Re: Discretion vs Mechanical
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
----------
> 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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