Here is the problem. Take just one, the euro. You can spend a lifetime and not be able to trade it except for when you trade simple levels and momentum that a trader navigates very well without concern for the macro fundamentals. I would vote for becomimg a better trader.
Whats wrong with making money in trend off of MA's?
The question is rhetorical as you are a better trader than i.
I would think the US sectors and leading stocks provide opportunity (though maybe all at once), most of the time.
All the writers i read know a lot more than i yet still put on their pants and tie and shlep to work each day for income and benefits. Why dont they trade for a living?
RiskArb07, is Gary Smith, a proffesional no bullshit trader who talks of his journey in "how I trade for a living" .I will not state here how much the book costs
on Amazon but, he fortunately does not need a few bucks from us.
I think it's to one's advantage if one has a sense of what one is trading an what may cause it to move in one direction or another- The currencies- and their relationships - to political and economic influences are perhaps open to speculation as to what will move them. For example- Pundits were talking a strong dollar a few months ago- and look at how it has declined- Look at a weekly chart of UUP, and then change it to EUO- Walking hand in hand.
" Whats wrong with making money in trend off of MA's?" Absolutely nothing wrong- When trending. I tend to rely on moving averages on all time frames- for reference - direction- and momentum- One has to make the decision as to how much exposure to volatility one can think is appropriate- select a time frame that will support that level of RISK graphically. I don't trade on moving average crossovers-though- I trade more on price action as it behaves -with a drop under a moving average a warning sign that I may elect to respond to- There's a world of difference in exposure depending on the time frame one applies-
Choose your charting preference- Price Action, SLA- Trend lines, Moving averages, FIB levels--Gann- many others I guess- and then choose a time frame to act on, and another for a longer view.
"The question is rhetorical as you are a better trader than i."
I don't know that to be the case at all-Not Relevant nor an accurate statement.
Today was the icing on the cake in terms of being on the wrong side of the market- and achieving a new account low.
But consider that I am not a "Better Trader" than you at all.
But - becoming a "better trader" is my personal goal.- and is likely yours.
One should not measure their relative sense of failure or success against another trader. That's a mistake- There will always be Traders that make more- or lose more- Traders that have more money- and traders that have less money- Traders that make a huge win- but perhaps took an inordinate amount of Risk in doing so- Other traders with large accounts have a distinct advantage to traders with smaller accounts.
Trading is long term- It's not about what happened this week- or this month- It's not about some trader's big 100% gain
A "Better Trader" is yourself seeking to compare and improve your present trading against the trader you were last month- last year- 5 years ago. Compare yourself only against some market benchmark- SPY, FXE, etc. if you desire a metric of your performance- but then compare the amount of beta- Risk and volatility- that came with that performance- That's the only fair metric that you or any other trader needs- Because, we all have different tolerances and willingness to take on and accept RISK- Would you prefer to have a 15% gain with a 25% volatility swing- or
a 10% gain with a 10% volatility- Knowing what you are personally comfortable with in market exposure/volatility- and balance that against the net gain or loss you achieve in your approach - is what counts the most-
What is "Better"- ? Better for me implies higher consistency in my approach, Even if the approach is losing during a period of time, if i can execute properly-, and take my losses as needed- I am being effective -in my execution- Then- Recognize when the approach is not performing up to expectation- adapt to the changing environment, and modify the approach- perhaps initially smaller position size- perhaps look to see what is working elsewheres- Also- managing the RISK in each position, reducing the exposure to leverage, to size- and eliminating careless mistakes in order placement- and stop adjustments. I need to work on all of these.....
BETTER- for me - will be expanding my understanding of the bigger picture- and how to try to take advantage of it.
"ll the writers i read know a lot more than i yet still put on their pants and tie and shlep to work each day for income and benefits. Why dont they trade for a living?"
I think the answer to the question is obvious- It is easier to be an academic and do hind sight quarterback calls- than it would be to put yourself on the line and make that call up front- - IF you have such great trading prowess, Why not simply focus on executing your trading with investment monies- Why would you seek a subscriber base as income- That would be a major distraction to simply executing your winning approach for a select group of investment monies- Anyone managing a subscriber service- likely has found the subscriber service charges much more profitable than their own trading- and with virtually NO Risk! Ca-Ching!
Additionally- Let me add my personal disclaimer-
Last year I had a decent 12% +/- trading gain- with limited downside protection using a fast 2 hr chart- I had more losing trades than winning trades- but they were small- I learned to allow winners a bit of room to run longer- Doesn't occur all that often.
That was fine- because i was hunting in a private FED hosted preserve- in a perfect season for my approach.
This year, Hunting similar quarry, similar methods- has not worked out well. The tight stops have been executed as volatility has increased. Lack of trend momentum finds a trade looks good for a day or two, but then reverses. A prudent hunter would return to the lodge.....I am willing to hunt in the rain- to my disadvantage. A smart hunter would be looking for a different preserve.
MY Trading account is Not my retirement account- It is a separate account- My trading account is the proxy for the time when I make the decision whether or not to actively manage my retirement account- Presently I am unimpressed with my abilities as a trader to position myself in the market gyrations- So, Vanguard- or a Robo account (Betterment.com) is high on the successor list. MUTUAL FUNDS are NOT on my list.
I would recommend to not be at all concerned with how you perceive anyone else's
trading - and simply evaluate your own progression against something like an Index.
This will give you a more balanced perspective of your performance/Risk - and forget what the other guy made on such and such a trade-
I will expand this on another thread.....
Regards- Thanks for posting-
I
