Have to strongly disagree with this bit, surf. I have another 'business', unrelated to trading, which has a defined mathematical edge. No question about it. If i keep doing it, i make money over the long run. Yet in the interim period, I still have losses and drawdowns, which can be hefty, and cause confidence to drain away and fear of loss to increase.
Collection of the most stupid trading advice ever
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Have to strongly disagree with this bit, surf. I have another 'business', unrelated to trading, which has a defined mathematical edge. No question about it. If i keep doing it, i make money over the long run. Yet in the interim period, I still have losses and drawdowns, which can be hefty, and cause confidence to drain away and fear of loss to increase.
KISS
"Keep it simple, stupid." Often a good idea, sometimes a stupid idea. Very stupid. Complexity exists for a reason.
KISS is good for a trading metastrategy. Doesn't get any simpler than "trade with the trend".
But implementing an idea can become complicated if done properly. Applying KISS at the strategy (aka detailed plan) level means you're stuck with crap like MA crossovers and channel breakouts.
Sometimes complexity is good, even necessary.
The best trading motto is ABT: Always Be Thinking.
"Keep it simple, stupid." Often a good idea, sometimes a stupid idea. Very stupid. Complexity exists for a reason.
KISS is good for a trading metastrategy. Doesn't get any simpler than "trade with the trend".
But implementing an idea can become complicated if done properly. Applying KISS at the strategy (aka detailed plan) level means you're stuck with crap like MA crossovers and channel breakouts.
Sometimes complexity is good, even necessary.
The best trading motto is ABT: Always Be Thinking.
Disregarding the big swing and trying to jump in and out
was fatal to me. Nobody can catch all the fluctuations. In a
bull market your game is to buy and hold until you believe that
the bull market is near its end. To do this you must study
general conditions and not tips or special factors affecting
individual stocks. Then get out of all your stocks; get out for
keeps! Wait until you see -- or if you prefer, until you think
you see the turn of the market; the beginning of a reversal of
general conditions. You have to use your brains and your vision
to do this; otherwise my advice would be as idiotic as to tell
you to buy cheap and sell dear. One of the most helpful things
that anybody can learn is to give up trying to catch the last
eighth or the first. These two are the most expensive eighths in
the world. They have cost stock traders, in the aggregate,
enough millions of dollars to build a concrete highway across
the continent.
- Reminiscences of a Stock Operator
So there you have it! The greatest trader of all time says advice to buy low and sell high is stupid.
was fatal to me. Nobody can catch all the fluctuations. In a
bull market your game is to buy and hold until you believe that
the bull market is near its end. To do this you must study
general conditions and not tips or special factors affecting
individual stocks. Then get out of all your stocks; get out for
keeps! Wait until you see -- or if you prefer, until you think
you see the turn of the market; the beginning of a reversal of
general conditions. You have to use your brains and your vision
to do this; otherwise my advice would be as idiotic as to tell
you to buy cheap and sell dear. One of the most helpful things
that anybody can learn is to give up trying to catch the last
eighth or the first. These two are the most expensive eighths in
the world. They have cost stock traders, in the aggregate,
enough millions of dollars to build a concrete highway across
the continent.
- Reminiscences of a Stock Operator
So there you have it! The greatest trader of all time says advice to buy low and sell high is stupid.
True, but you have an edge already. I am talking about folks that really don't have an edge-- Yes, I was a little overreaching in my statement that pysch isn't needed for those with an edge-- I'll restate that psych only makes sense for those with an edge ( winning traders) .
I remember doing option arbitrage which was a true edge at the time. The best traders at the firm were the ones with zero experience because they did what they were told-- the guys with experience had a tougher time executing the system---- The best traders had no confidence and no fear ( it wasn't their money) they just executed the system---- this is a true edge.
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JEssie also believed in testing the market with small positions first then adding to the position as it moved in your favor. surf
BCASD & SDABC are not the same as BLASH & SHABL..that should be "obvious"..hell, you can't even pronounce them
J_S
"Cut your losses short and let your profits run." Most useless and moronic advice I've ever read.
I mean, what the fuck do you mean about letting profits run? We all know that trading is not that simple, you could be making $1000 right now and see it turns $0 1 minute later, because you didn't close the position and the market reversed. Conversely, "cut your losses short" is a stupid advice because it encourages incorrect stop-loss placement. The stop loss placement should be technical, if you think it's too big don't trade or trade with a smaller position.
I mean, what the fuck do you mean about letting profits run? We all know that trading is not that simple, you could be making $1000 right now and see it turns $0 1 minute later, because you didn't close the position and the market reversed. Conversely, "cut your losses short" is a stupid advice because it encourages incorrect stop-loss placement. The stop loss placement should be technical, if you think it's too big don't trade or trade with a smaller position.
the correct version is something like know where to cut your losses and how far to let your profits run.