Do trading edges for retail traders rely on intellect or do they rely on knack ?

[SimpleMeLike]

when someone says trading is arts not science, only means he has not done systematic research of his strategy. if he has gone through that step, he will know which rule is useful, which is not, even his subtle instinct has some patterns behind it beyond his own realization.

Hello trend2009,

Explain what you mean by systematic research?

 

[trend2009]

Hello trend2009,

Explain what you mean by systematic research?

you back test your strategy rigorously using the rules you would use in live trading.

 

[trend2009]

In my experience, once one gets some kind of edge, consistency is the key. One has to do the same thing over and over and over day in and day out without wavering for years and this is extremely difficult for most people. Every failed trader I have seen in real life has lost due to lacking this trait. Inevitably they string together a few wins then start wondering "well, maybe I can buy in a little lower" "maybe a few extra contracts" or "maybe I need to start selling a bit higher" or the infamous "I just need to pull a few dollars out this month to get through some bills" etc. Another category of failure unto itself is when a trader has a valid edge but gets too scared in a draw down and pulls everything out despite his edge telling him to hold. To add insult he then gets "mad" at the market to resolve the cognitive dissonance and doesn't get back in. In all, I believe the lack of consistency has more to do with the terrible statistics for traders than anything else.

so true

 

[BearTrades]

BearTrades,

Would you agree that if the trader put in the "right time" the trader can suceed? I agree on the experience.

Absolutely, the right time is probably a better way to put it. Some traders are wasting time trading styles that dont fit their personality. Trying to fit a square peg in a round hole.

 

[Turveyd]

My muppet ex mate with a IQ in the 80's, who'll never watch porn cause if he does no woman will marry him, he's 48 don't think that's his issue and thought stars where lights like few miles away in the sky, was actually a very good trader and proper tighter than a ducks ass.

I'm his ex mate cause I owe him 20p I can't remember, all the lifts he's had, go F yourself comes to mind over 20p, seriously, FREAK!!!

 

[ironchef]

Me, I rather be lucky than be good.

 

[schizo]

Just what is considered intellect anyway when you're competing against bots (soon it'll be AIs). It's pointless to even ask.

What you need are merely two things: profitable strategy and discipline to follow through. Other than that, it's all noise.

BTW luck doesn't come to those who can't spot it.

 

[murray t turtle]

Hi guys,

Do trading edges for retail traders rely on intellect or do they rely on knack ?

For example, if we were to use analogy, in various aspects, we find people who analyse and try to intellectually understand how stuff works and try to improve using technical skills and imagination and application. This I would categorize as intellect for this question.

On the other hand, some people in various walks do not analyse a lot. They find a pattern that works or keep it very simple in a way a thinking person may not be able to.........

Question is, which of these 2 (or maybe combo) gives the edge in trading ?

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Etrades;sounds you have enough math skills. LOL/true.
I would note; finding/measuring a good trend+ trading/investing it is more important than over thinking it. Sure, its fun to analyze+ play action addict.

Hint ;most of the market millionaires are market makers /specialists + long term investors; its NOT rocket science. [ Yes; I read his book on rocket science trading......LOL] Another hint, as they say in Chicago; '' the smarter you are , the longer it takes'',

 

[comagnum]

Finding an edge is not that difficult, making profits from it will depend on your psychology + risk/trade mgmt. It always looks easy on a chart or back-test with the benefit of hindsight - the hard part is applying it through draw downs.

Humans are lousy traders due to our brains primitive Amygdala. Winning traders have learned how to keep their psychology in check which is a hard won skill.

Intelligence plays a role in creating a rules based trading plan with a strong risk/trade mgmt strategy. Without the right psychology all the intelligence under the sun is worthless. Systematic traders do not get a free pass on this.

 

[murray t turtle]

Finding an edge is not that difficult, making profits from it will depend on your psychology + risk/trade mgmt. It looks easy on a chart or back-test with the benefit of hindsight.

Humans make for bad traders due to our brains primitive Amygdala. Winning traders have learned how to keep their psychology in check which is a hard won skill.

Intelligence plays a role in creating a rules based trading plan with a strong risk/trade mgmt strategy. Without the right psychology all the intelligence under the sun is worthless.


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So True. IF it was just math,LOL, NObody would ever use a 29.99% APR credit card LOL-LOL,