Mark Douglas - How to think like a professional trader

[digitalnomad]

Unless you're trading without stops, mental or otherwise, or are using options to hedge a directional trade (which is not free)

ballstaranonymous said:
“There is a better way to enter trades then betting a given signal bar/prior bar will not "back fill" and stop you out. This broken concept fed to the masses is why beginners cannot advance past how one can be profitable without discerning trend from chop - it isn't necessary”

My agreement with this assumed entering a single trade and entering a stop, which is a fools game for intraday trading. Way too much noise to capitalize on that. Multiple bets should be spread with a hedge or stop orders.

I personally use stops, but I’m aggressive. I can hedge, but it’s more work/less money. Every dollar in broker account is disposable. If my entire net worth was in the market, or in the position of managing OPM, I would definitely be hedged.

 

[Frederick Foresight]

How to think like a professional trader?

No such thing as a professional trader. How to make money trading? Do not enter trades based on "signal bars". You have to enter sooner, anticipate, turns. Think about it..

How do you know my signal bar doesn't signal sooner than your signal bar?

Anticipating turns?

 

[Frederick Foresight]

My agreement with this assumed entering a single trade and entering a stop, which is a fools game for intraday trading. Way too much noise to capitalize on that. Multiple bets should be spread with a hedge or stop orders.

Do you mean scattershot, simultaneous bets on the same instrument? If so, why would this be better or safer than carefully placed sequential bets?

 

[digitalnomad]

Do you mean scattershot, simultaneous bets on the same instrument? Why would this be better or safer than carefully planned sequential bets?

Yes. Why? Because it covers a broader spectrum and shields from noise. Limited amount of range exists per day. Attempt to cover every angle should be made.

 

[Frederick Foresight]

Yes. Why? Because it covers a broader spectrum and shields from noise. Limited amount of range exists per day. Attempt to cover every angle should be made.

Sounds expensive. It's your trade-off of choice, so who am I to argue?

 

[speedo]

One man's "noise" is another man's signal. Some work some don't, that's trading.

 

[Frederick Foresight]

Part 1:

Part 2:

Part 3:

Part 4:

As I noted in another thread, I've never been able to read Douglas's first book cover to cover. It was like riding a bicycle too slowly; I kept falling (asleep). However, I did manage to read all of his second book. I may not have liked or agreed with everything he wrote, but there were some nuggets worth savoring. The videos are a bit too drawn out; he really stretched for time to create a suitable length DVD series. The 4th video is worth watching, though, even if only as a refresher.

One bone to pick, though. All trades are not necessarily and always independent of one another. Sometimes your method is just not in sync with the market, one trade after another. And sometimes, your head is just not in the game. Either case makes for less than independent outcomes.

 

[smileypete]

Got to remember that the Douglas material originally came out many years ago, I'd say he's the father of trading psychology.

This interview with Steve Goldstein is well worth a watch in my opinion:

 

[eves_banished_children]

The disciplined trader's message (in summary) is ... try to be objective.

I have no problem with that message, I liked the book.

 

[ElectricSavant]

Nah...you think? That would throw a monkey wrench at TA now wouldn't it? Answer: Deep pockets count on TA...there are followers and there are leaders!

CasinoPonziSavant

"Deep pockets manipulate the market on a regular basis in order to enter/get out of trades"