Principle based day trading strategies

W.J. Feathermaker III said:
That is certainly one way to trade, I suspect a lot of people on here will disagree with it because they will argue that it's "impossible" to time entries close enough to areas that will make it possible to take an immediate miniscule loss if the market doesn't move in your favor. It does require very precise entries IMO.
More...

Timely trading possible when we focus on the X-axis of the intraday chart which is time. I call it as momentum trading. :)

https://www.elitetrader.com/et/threads/what-is-an-edge-in-the-strategy.303772/
 
Last edited:
Overnight said:
Trading is NOT GAMBLING!
More...

if we define gambling as a game with a probable outcome, then all our life is gambling (with the different probability for its different aspects)

so is the trading - it is gambling
 
This thread deserves a mercy killing.

The OP's "principal" for DAY trading is to 'not lose money' - which is, of course, impossible within the confines of the literal term 'day trading'. If you're not cheating or doing something illegal.

This 'principal' to "not lose money" day trading is akin to telling a rodeo rider to never fall off his horse. Delusional psychobabble. And equating the maxims of Warren Buffett to real 'day trading' considering the timeframes involved is fairly useless. Much more applicable to your 401K is Buffett.
 
bone said:
This thread deserves a mercy killing.

The OP's "principal" for DAY trading is to 'not lose money' - which is, of course, impossible within the confines of the literal term 'day trading'. If you're not cheating or doing something illegal.

This 'principal' to "not lose money" day trading is akin to telling a rodeo rider to never fall off his horse. Delusional psychobabble. And equating the maxims of Warren Buffett to real 'day trading' considering the timeframes involved is fairly useless. Much more applicable to your 401K is Buffett.
More...

Principle, intuition, insight, inspiration, attitude, mindset, etc are creative thinking.
Types-of-thinking.jpg



This article properly connects the principle with mindset/attitude :
http://www.investopedia.com/financial-edge/0210/rules-that-warren-buffett-lives-by.aspx

The bottom line is that trading is business. And in any business creative thinking is the master and the analytical thinking is the loyal servant. The other way won't work in business.

People who are too much oriented towards analytical thinking struggle to see value in creative thinking and prefer to view trading just as a profession and resist to see it as a business. This is true with most of the trading coaches. This is a weak foundation.

"Trading is a business" : https://www.elitetrader.com/et/threads/trading-basics.305318/

Traders deserve business coaching. Nothing less than that.

Hope the ET sponsors are listening. :)
 
Last edited:
rajesheck said:
Traders deserve business coaching. Nothing less than that. :)
More...

Look, I've got a dual major from the University of Chicago's Graduate School of Business. Been trading since 1993. Seriously - those two items on my CV are mutually exclusive. Really. You can cliche me and Power Point me for the next two months on this abortion of a thread... first it was the "principle of not losing money" for day trading , and now it's Warren Buffett for day trading...

Seriously, if all it took was an MBA (which are typically 20 graduate level business classes) or 'business coaching' then 20% of the adult population would be professional financial or commodities traders.

Successful traders have a sound, proven trading system, a solid position management system, and the emotional maturity and guts to follow those two features without fail or exception. Good traders grind out income, and it's not a particularly glamorous job. Nothing more is required. And grinding out income includes taking losses. Routinely.
 
bone said:
Look, I've got a dual major from the University of Chicago's Graduate School of Business. Been trading since 1993. Seriously - those two items on my CV are mutually exclusive. Really. You can cliche me and Power Point me for the next two months on this abortion of a thread... first it was the "principle of not losing money" for day trading , and now it's Warren Buffett for day trading...

Seriously, if all it took was an MBA (which are typically 20 graduate level business classes) or 'business coaching' then 20% of the adult population would be professional financial or commodities traders.

Successful traders have a sound, proven trading system, a solid position management system, and the emotional maturity and guts to follow those two features without fail or exception. Good traders grind out income, and it's not a particularly glamorous job. Nothing more is required. And grinding out income includes taking losses. Routinely.
More...


First things first, since business is an art, it is not a place for arguments because there is nothing right or wrong in any art until there is meaningful creativity.

However, my question is whether we are seeing business as an art, a philosophy, a principle, a channel for self expression and creativity, a great opportunity to give our best in life... ? And specifically are we really treating trading as a business ?

The following are just my personal view points and not arguments, based on which i am running my trading business.

Business is more of an art, and all successful business systems are born from creative process, not systematic approach.

In any successful business, creative thinking is the master and analytical thinking is the loyal servant.

Business principle, which is a creative thinking, is central to any successful business.

Business systems must be loyal servants to the founder's business principle, not the other way.

Trading, including day trading, is a business, and business principle is crucial for success in trading.

Creative thinking : Developing a strategy is a creative process, though a strategy is a system. And the creation must have the business principle as it's center.

Analytical thinking : Blending a proper risk management.

Psychology : Self management while trading.

Business demands all round performance, though creative thinking is the master of all.

Stock trading is considered to be one of the toughest and extremely demanding business in the world.

Business is a high level profession and needs high level of intelligence to succeed. Bloom's Taxonomy suggests that creative thinking is the highest form of intelligence available to humanity. Analytical thinking takes 4th place on the scale, while creative thinking takes the top position.

bloomtaxonomy-jpg.169087


Have we made our creative thinking the master or analytical thinking ?

Its up to us. :)
 
Last edited:
Negative attitudes vs positive attitudes.

See how our attitudes either nourish or block our creativity...
http://www.virtualsalt.com/crebook1.htm

Attitudes are actually very powerful ontological perspectives.

90% or more of traders are struggling because of attitude problems.

When attitudes become positive, creativity will flow and trading becomes profitable. :)
 
Last edited:
You must log in or register to reply here.
Back
Top