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PureBytes Links
Trading Reference Links
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In the process of learning how to trade, I violated all the rules several
times, it takes some longer than most. Did I learn from my mistakes early on,
no, I kept on losing. As the years have gone by, I developed more and more
rules, so that if the market does something strange, I can react without
freaking out. I believe that most violate market principles because they have
not formulated enough scenarios of what the market may do.
Example: say you were short the T-bonds and the market opens right on
your mental protective stop, many freeze and start hoping, this concept would
be difficult to test. But if it opened on your mental stop and your rule was
to expand your stop a few tics, this would be testable. Another ex: say you
sold Soybeans and made a huge profit in one day, some traders may use their
normal protective stops or some if they had tested it out found they may use a
tighter stop to lock in that profit.
I believe that even if you read and read the "Doctrine" and make notes
that you will not violate it, unless you have formulated your trading methods
well enough ...
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