How NOT to trade - Perfect Example

[scriabinop23]

Quote from whitster:

it's also all about projection

some here are either in the same phase as this trader, or were not too long ago.

we tend to be more critical of what we see in others that we recognize in ourselves. we've all had these wrestling matches with ourselves while trading - engaged in rationalization, breaking rules, uncertainty, stubborness, fear, etc.

it's painful to watch, in part, because even the most successful traders recall going through the "losing money" phase.

exactly. his mention of the EIA reports being purportedly bullish, yet him seeing contrary (bearish or choppy) activity reminded of when i first attempted to trade natural gas and oil, with mixed and often random success. it seems with so many reports (for all markets), market reaction often correlates as much as a coin toss.


now i learned but to entirely [attempt to] avoid the 'scalp the report' trade ... just too unpredictable, when in truth there's a lot more than meets the eye going on in these energy markets [and that knowledge exists perhaps only bigger players might be more privy too].

[same applicable across most markets]

 

[Cutten]

I feel a bit sorry for this guy, since it's painfully obvious he has no edge whatsoever and yet he doesn't seem to realise it or even consider that possibility. The way he talks about his trades, there's no conviction at all in any of them. He might as well be flipping coins for his entries.

Also, he is displaying typical novice arrogance by trading 4 lots in the Dax. He should be doing 1 lots. All traders should start with minimum size until they precisely *know* what their edge is.

The lack of discipline at least he recognises.