Exp traders ... 5 Fatal Flaws of trading

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Quote from deadbroke:

f these 5 commonsense rules are ALL there is to it and that even a person of av Int. would understand them easily, then why is the trader failure rate so high? Obvious answer would be, "traders break these rules" ...

There's got to be something else that's still missing ....
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There is. Few traders will come up with longterm, highly successful outperformance edges. I am talking positive expectancy, not psychology and feel good.

Trading is negative sum (a lot of costs are taken out of the pot). And most of those who do have an edge will blow up with money management problems.

Rules do not help a nonprofitable trader. Think someone who goes to the casino and plays roulette. Longterm, everyone loses except the casino. And of course, the tax authorities
 
Quote from deadbroke:

Experienced traders (and all others too), please read the "Five Fatal Flaws of Trading" and tell me if you agree or think it comes up short and if so, what else might you add ...

Thank you

http://www.elliottwave.com/freeupda...27/Five-Fatal-Flaws-of-Trading----Part-I.aspx

http://www.elliottwave.com/freeupda...9/Five-Fatal-Flaws-of-Trading----Part-II.aspx
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This was pretty much tripe. And he got the order wrong - above all else, risk/money management has to be first. Everything else is irrelevant until this is mastered.
 
Another one I would add to this list is 'not having pressure to succeed'.

When I was trading without another form of income, the pressure was very great, not to mention the fact that I was a noob.

Now that I have an evening job pulling in over $40k, I have absolutely no pressure to succeed. Also, that goes hand in hand with patience. Now that Im' not relying on trading profits to live on, I find myself taking only the highest quality setups. Some days I won't even place a trade, and this has helped my winning percentage out substantially.
 
Quote from TraderZones:

There is. Few traders will come up with longterm, highly successful outperformance edges. I am talking positive expectancy, not psychology and feel good.

Trading is negative sum (a lot of costs are taken out of the pot). And most of those who do have an edge will blow up with money management problems.

Rules do not help a nonprofitable trader. Think someone who goes to the casino and plays roulette. Longterm, everyone loses except the casino. And of course, the tax authorities
More...


Thanks TZ.

Lot of meat in your post, so trying to understand .....

Can you give me just one easy to understand example of an outperformance edge?

& ..... isn't "money-management" simply = risk per trade, quantifiable as $200, $1,000 etc., that a fellow can easily understand, or is there more to this oft bandied phrase (that has given me a headache)?

Thanks
 
Positive expectancy is difficult if not impossible to quantify in the present/future tense. The more you understand what edge if any you have, the more likely you can adjust as the market shifts; otherwise, virtually all "non-structural" edges disappear over time.

A simple example of an indisputable edge is information. Do you really think trading would be all that difficult if you had the same access to information as certain firms and hedge funds? Do you think it's possible that Goldman could have just one losing day out of an entire quarter -- if their concept of "trading" was the same as ours? Would you even consider what they do "trading", given all the bs we need to wade through as individuals in the dark?

Do you think a typical trader at GS needs to struggle with the 5 fatal flaws? How about struggle to stop laughing while mashing scrota on a conveyor belt instead?
 
bad investment and trading advice. jesse livermore lost the most money listening and taking advise from professional morons.


Quote from deadbroke:

Experienced traders (and all others too), please read the "Five Fatal Flaws of Trading" and tell me if you agree or think it comes up short and if so, what else might you add ...

Thank you

http://www.elliottwave.com/freeupda...27/Five-Fatal-Flaws-of-Trading----Part-I.aspx

http://www.elliottwave.com/freeupda...9/Five-Fatal-Flaws-of-Trading----Part-II.aspx
More...
 
I've lost the most money listening to professionals in the industry morons in the industry who claim to be professionals and hold jobs in investment brokerage houses.

Quote from deadbroke:

Experienced traders (and all others too), please read the "Five Fatal Flaws of Trading" and tell me if you agree or think it comes up short and if so, what else might you add ...

Thank you

http://www.elliottwave.com/freeupda...27/Five-Fatal-Flaws-of-Trading----Part-I.aspx

http://www.elliottwave.com/freeupda...9/Five-Fatal-Flaws-of-Trading----Part-II.aspx
More...
 
The advice in this article is from professional working in the industry moron. Bad advice like this article or from morons can cost you money and your mental health.

Quote from deadbroke:

Experienced traders (and all others too), please read the "Five Fatal Flaws of Trading" and tell me if you agree or think it comes up short and if so, what else might you add ...

Thank you

http://www.elliottwave.com/freeupda...27/Five-Fatal-Flaws-of-Trading----Part-I.aspx

http://www.elliottwave.com/freeupda...9/Five-Fatal-Flaws-of-Trading----Part-II.aspx
More...
 
last post in these moron message boards and financial websites. KISS.

Quote from marketwizards:

The advice in this article is from professional working in the industry moron. Bad advice like this article or from morons can cost you money and your mental health.
More...
 
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