Search results

You shouldn’t expect a mentor to show you a method. You should expect a mentor to guide you through the process of finding and developing a system that suites you. Too many people are looking to copy a method that may not be appropriate for them.

For sure some are! It is nice to see someone calling trades rather than claiming to have made them.

This theory of yours is easily proved. Start a Journal; call your trades in advance giving the time of the trade, the direction and the exits. You can use SPY as an example and see if you can out perform a buy and hold strategy.

We are discussing when to exit a trade. If the point where every one else gets out is an entry point I assumed you would be adding. If not then you are discussing entry points not when to exit long term trades.

Right!! I'm willing to change as long as I don't have to do anything different.:) :)

How do you know what is crap and what isn't? What is it you need to do? While attempting to filter out the crap you have to avoid what behavioural finance researchers call confirmation bias. This is the tendency to seek out information to confirm your beliefs and ignore or underweight anything...

In an up trend this is true but I have a couple questions. In a bear market like 2008 how long do you keep adding? Where do you get the capital to add to your positions if you haven't sold anything?

Simple is better. A simple checklist of the things you want to see before you initiate a trade and an exit strategy. Fighter pilots train on simulators. If you are going to crash and burn it is better to do it on a demo account. Preserve your trading capital until you are ready to fly. Right...

Was what you learned by losing 17K in one morning worth the cost? Could you have learned the same lesson by burning $20 bills or the sterling equivalent?

Maybe T = Testing. Test your strategy before you go live. Use a demo platform in real time to see if you have the discipline to follow your plan. If you feel you have to have some skin in the game to teach you the hard lessons then take $500 in $20 bills and put them in an stack on your desk...

I stopped thinking about making money and focused on trading.

The beauty of a written plan is that it is easy to discern whether you followed your plan or didn’t follow your plan. Once you establish that you are following your plan to the letter it is easy to determine whether the system works or doesn’t. If you have only a mental plan that you modify as...

Would you agree that the proper use of stops will prevent a newb from blowing up in one day? To me a stop is placed where I know that the trade is not working the way I planned for it to work. If I don't take that stop then I'm "hoping" that the trade will turn around and putting more of my...

Isn't the reason that newbs burn out an account in one day because they don't use stops?

To my way of thinking the trade will have been successful if I followed my plan. There are 2 possible outcomes for a trade. Either I take a small loss or I take a profit. That is the relevant piece of information I have picked up. You can have a successful trade with a bad outcome. You need to...

I can not win every trade. A successful trade is one where you followed your plan.

Here are the reasons I wrote in my trading plan: Why am I Trading? To fund my leisure time. The challenge of being a successful trader and the bragging rights that goes with that designation. To keep busy. Trading gives me something to do that is interesting, challenging and hopefully...

Isn't that the objective of trading? Taking money from other traders.

I manage to make enough mediocre trades to achieve my trading goals. :)

I like simple. If a trade isn't working; get out; there is no law that says you cannot get back in. As far as missing a good trade I miss them all the time. The market presents many opportunities each day. I have to manage the trades I'm in, follow my plan, and not be concerned about coulda...