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Hello Ned,
Wednesday, December 08, 1999, 8:24:33 AM, you wrote:
NG> Dear RT:
NG> I enjoyed reading some of your insightful posts about trading systems. I
NG> though, maybe it would be worthwhile to discuss whether a system ( either
NG> mechanical or discretionary) is necessary for a successful trading.
(*)Indicates data be collected
First off I do not belive that any discretionary trader is such a fool
that he doesn't trade using a somewhat reoccurring mechanical influx
of technical and or fundamental data. Are we to belive that a
discretionary trader is some mystical wizard who set glaring at a
monitor waiting for the next impulse of psychic brilliance to point
him to a profitable trade? Da! no (*) he reads the paper (*) he talks
to other trades (*) he looks at yesterdays charts (*) he checks the
daily reports that are coming out (*) he then thinks of possible
scenarios (*) he then may check a few fax services to see what they
say (*) he then monitors the price action to make decisions based of
WHAT! THE FRIGGIN DATA HE JUST GATHERED!
You people saying that a discretionary trader can not be programmed
are talking about something that is as weird to me as. Well those
Wright Brothers may be able to fly but I'll be darn if they will ever
be able to invent an auto pilot. The mechanicalizing of apparently
discretionary trading is nothing more than the next step in the
evolution of trading. Some evolve and some DO NOT! Those that do not
evolve die out - becoming extinct, as they should and take their
antiquated ideas with them to the tar pits.
Why is there NO MORE Charlie D's? WHY? because times change!
Now to answer your question whether a system ( either mechanical or
discretionary) is necessary for a successful trading.
NO Because Modern Man, Neanderthal Man can both drink from the same
water (trading the markets) hole.
NG> Do we need to have a system as a decision support in our decision
NG> making process for trading?
Like I briefly mentioned EVERYONE uses a system to varying degrees
just some do not comprehend it fully or even at all.
NG> If yes, do we follow our own self-made
NG> system or a carefully selected one? If not, then what are some of
NG> the individual characteristics ( such as experience, commitment
NG> and discipline) and/or contextual factors such as time pressure,
NG> outcome feedback, and incentive schemes) that may influence our
NG> reliance to a trading system? And how these aforementioned factors
NG> may reduce ( or increase) our trading performance and accuracy?
I will have to do another whole long email latter to address all the
above. latter!
NG> Best, Ned
--
Best regards,
Mark Brown mailto:markbrown@xxxxxxxxxxxxx
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