I heard that a lot of people suggested that in order to trade successfully, one must filter and forget some of the stuffs they know about trading. So, to what extend should one forget?
How much should one forget to be successful?
- Thread starter Pension_Admin
- Start date
Tough question. It's very easy for new traders to get stuck in paralysis by analysis... but what to get rid of is hard to say in a blanket statement. What works for me will not work for others and vice versa.
It's a matter of finding what works best for you, which will require many different avenues of pursuit and then forgetting what did not work for you.
It's a matter of finding what works best for you, which will require many different avenues of pursuit and then forgetting what did not work for you.
"I heard that a lot of people suggested that in order to trade successfully, one must filter and forget some of the stuffs they know about trading. So, to what extend should one forget?"
This bothered me for quite some time. Some things that I've read seem to do more damage than good. "Polluted" my thoughts, my thinking, methods, imo just plain garbage, etc. "How can I unlearn this?".
Personally for me, I just kept reading and working, the crap fades. It works its way into the background of the psyche and replaced with whatever is relevant. I wouldn't worry about it.
This bothered me for quite some time. Some things that I've read seem to do more damage than good. "Polluted" my thoughts, my thinking, methods, imo just plain garbage, etc. "How can I unlearn this?".
Personally for me, I just kept reading and working, the crap fades. It works its way into the background of the psyche and replaced with whatever is relevant. I wouldn't worry about it.
Thanks for the valuable responses guys.
I have learned a lot during my past years from various sources. When I trade, I toss out all fundamental analysis as well as some technical analysis. I am trying to keep everything simple....so simple that I don't use moving average or RSI anymore, but then I wonder if I am doing the right thing since I am facing a bit of a drawdown. I am not sure if I have make it simple enough.
So, should one just throw away all technical analysis and just go with a coin toss instead?
I have learned a lot during my past years from various sources. When I trade, I toss out all fundamental analysis as well as some technical analysis. I am trying to keep everything simple....so simple that I don't use moving average or RSI anymore, but then I wonder if I am doing the right thing since I am facing a bit of a drawdown. I am not sure if I have make it simple enough.
So, should one just throw away all technical analysis and just go with a coin toss instead?
"So, should one just throw away all technical analysis and just go with a coin toss instead?"
Re; the coin toss.
At the moment I can't remember how this worked out for me, I paper traded coin tosses, may have to try it again. If you opt for the coin toss, then the trade becomes money management. But you still have to correlate to the market (or something), not necessarily another coin toss because historical probability data is out there.
Actually though, can it ever be 50/50 after you make your first trade or read your first book? It might feel like 50/50. There are dozens of coin toss theories (of course my favorite is Grahams's village of Doddsville), I'm just making the point of money management.
Re; the coin toss.
At the moment I can't remember how this worked out for me, I paper traded coin tosses, may have to try it again. If you opt for the coin toss, then the trade becomes money management. But you still have to correlate to the market (or something), not necessarily another coin toss because historical probability data is out there.
Actually though, can it ever be 50/50 after you make your first trade or read your first book? It might feel like 50/50. There are dozens of coin toss theories (of course my favorite is Grahams's village of Doddsville), I'm just making the point of money management.