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Perhaps there is something being lost here in perspective. Most traders
(especially the newbies attracted by mass market advertising run by the ilk
of Omega as well as system sellers promoting unlimited riches without
effort) hope to acquire and trade a system without a thorough understanding
of the underlying market. This is not unlike a wannabe surgeon operating
from a book without an underlying knowledge of biology and anatomy or a
wannabe lawyer practicing with a bunch of forms without an underlying
understanding of the legal system and common law. Those who acquire trading
systems without an underlying knowledge of the structure and psychology of
the markets have no basis upon which to judge the efficacy and durability of
the system. Many of those who make the effort to acquire knowledge of the
structure and psychology of the markets gravitate toward discretionary
trading because a system is no longer required. This of course does not
speak to the issue of discipline in actually pulling the trigger and
controlling losses, however someone who has a good feel for the markets
probably has a better sense of when to trade and when to stand aside.
Earl
----- Original Message -----
From: Ned Gandevani
To: realtraders@xxxxxxxxxxxxxxx
Sent: Wednesday, December 08, 1999 7:02 AM
Subject: [RT] Is trading system necessary for a successful trading? {01}
Dear RT:
I enjoyed reading some of your insightful posts about trading systems. I
though, maybe it would be worthwhile to discuss whether a system ( either
mechanical or discretionary) is necessary for a successful trading. Do we
need to have a system as a decision support in our decision making process
for trading? If yes, do we follow our own self-made system or a carefully
selected one? If not, then what are some of the individual characteristics
( such as experience, commitment and discipline) and/or contextual factors
such as time pressure, outcome feedback, and incentive schemes) that may
influence our reliance to a trading system? And how these aforementioned
factors may reduce ( or increase) our trading performance and accuracy?
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