strategy doesn't matter

Quote from terminator:

THE NUMBER 1 REASON WHY NEWBIES FAIL IS INABILITY TO COMPREHEND THAT 90% OF THE PROFITS IN TRADING ARE MADE BY DISCRETION. Now i'm not talking about being a quant driven hedge fund but just a simple trader who makes money trading on his own account.

In the course of my research i must have come up with 20 strategies which had the potential to make money but i chucked alot of them in the wastebasket because

1) they didn't make enough $$$.
2) they lost too often.

the thing i didn't realise is that all is needed to trade is a simple positive expectancy shell of a strategy to guide you. it doesnt matter if its a simple MACD or stoch strategy. Most importantly it must SIMPLE. what is most important is one's ability to implement the strategy. This can only come with EXPERIENCE. i.e by making and bumming so many bad decisions.

So my point is don't spend all day looking for a great strategy! I'll bet my damn account here that guys who post consistently great p/l like rearden, szeven, redink etc don't have strategies which are all that more complicated than what me and you are trading.

The difference is discretion. They know when to step a little out of the bounds of their strategy to make extra and when to sit on the sidelines. Adaptability is the reason why their so posting such good p/l
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THIS IS ONE THE WORST POSTS I HAVE READ ON ET.

Discretion=emotion.
Emotion=Blown Account.

Get a strategy that can account for different market conditions. Trade that strategy, rain or shine.

If you don't emotions will catch you, not if, but when.

I have taken losses that I knew would be losses because my system told me not to get out before a certain point.

The benefit?

The system kept me in trades that I felt I should take my profits and run, only to turn into a "10 bagger".

Get some rules, and stick to them. If you risk blowing your account, Stop. Review your rules. Adjust your rules, then trade your rules.

Don't change horses midstream.

Best Regards
Oddi
 
See, this is the thing.

You will take a series of losses. If you do not know that your system will weather this storm, then you will abandon your system, which will lead to more losses, and worse, you having no idea where you are in the market.

You MUST get a system that you know will survive in the times that it was not meant to work in.

Or, employ an alternate system. Trending and chopping systems are different. Know when to move from one to the other.
 
Quote from terminator:

THE NUMBER 1 REASON WHY NEWBIES FAIL IS INABILITY TO COMPREHEND THAT
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They do not have the proper psychological profile to trade succesfully.
 
The answer to the opening post of this thread is easy.
You are NOT going to make yourself rich trading on discretion.
It is NEVER going to happen. If ultimately you are both not savvy enough and not willing enough to make all the effort needed, you will not get to where you need to go.

As an individual player you must have a methodology which is accurate. It must nail down all the loose ends. It brings in the points from the huge number of points the markets (CL, YM, ES, etc) offer daily.

Therefore to exploit fully a market you have to trade it, Open to Close, buying the upmoves and selling the downmoves sequentially. You are then banging home each day a shitload of points with a very tight and accurate system.
:)
 
Quote from terminator:

THE NUMBER 1 REASON WHY NEWBIES FAIL IS INABILITY TO COMPREHEND THAT 90% OF THE PROFITS IN TRADING ARE MADE BY DISCRETION...
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I strongly disagree.

There are many reasons why newbie traders fail (e.g. under capitalized, discipline problems, trading environment not suitable et cetera).

In fact, I think most traders are not suitable for trading prior to taking that very first trade although I have no facts to support such belief.

Mark
 
I agree
and finding a strategy that meets your personal tolerance for risk plays a large part in this
theres lots of workable plans out there - but many of them my require you to risk too much capital to be right for you


Quote from yucca_mtn:

"Don't spend all day." Right. Spend about a year finding and deciding on a strategy that most suits your personal style and risk tolerance. Make sure it sounds logical to you, and that you understand it very well, and make sure the odds are in your favor on every trade you make. Then spend the rest of your life perfecting the methodology to make it work for you. Get really good at doing the one thing. My two cents.
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Quote from pneuma:

Crap. The number one reason why newbies fail is their inability to develop a valid simple strategy - entry, exit and risk management. They don't spend enough time in system development and spend too much time dreaming of the massive profit they are going to make.

Taking that further, they then believe that one strategy is enough. Which is also crap. Successful traders develop a variety of tools that respond the the current market conditions - thus utilising a tool box of simple profitable stategies.

pneuma
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You nailed it!!!!!
 
Quote from oddiduro:

THIS IS ONE THE WORST POSTS I HAVE READ ON ET.

Discretion=emotion.
Emotion=Blown Account.

Get a strategy that can account for different market conditions. Trade that strategy, rain or shine.

If you don't emotions will catch you, not if, but when.

I have taken losses that I knew would be losses because my system told me not to get out before a certain point.

The benefit?

The system kept me in trades that I felt I should take my profits and run, only to turn into a "10 bagger".

Get some rules, and stick to them. If you risk blowing your account, Stop. Review your rules. Adjust your rules, then trade your rules.

Don't change horses midstream.

Best Regards
Oddi
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discretion does not equal emotion. Any successful pit trader will tell you that. Any successful scalper will also tell you that discretion does not equal emotion. Discretion is only emotion for a crap trader because they have not accumulate enough experience in order to use discretion properly

Discretion = cumulative experience of the trader. If the person is not sufficiently experienced then the discretion is simply acting on emotion. But with enough experience discretion is far more effective than any simple strategy.

i am not advocating not using a strategy. Most people must understand that big profits come only with discretion + strategy. With discretion or cumultive experience being the bigger part of the equation. At the moment i could trade the first strategy i used profitable easily. when i started i had the same strategy and same expectancy yet it was nowhere near as profitable.
 
Quote from Cheese:

The answer to the opening post of this thread is easy.
You are NOT going to make yourself rich trading on discretion.
It is NEVER going to happen. If ultimately you are both not savvy enough and not willing enough to make all the effort needed, you will not get to where you need to go
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you do realise what your saying dont you?

You are not going to get yourself rich on discretion. So thatmeans that anyone and everyoen who uses trendlines, S/R and price patterns will never get rich

i've seen enough ppl get rich on perfecting those 3 concepts alone that i'm not sure where the extra effort is needed
 
Quote from aus_SPIder:

you do realise what your saying dont you?

You are not going to get yourself rich on discretion. So thatmeans that anyone and everyoen who uses trendlines, S/R and price patterns will never get rich

i've seen enough ppl get rich on perfecting those 3 concepts alone that i'm not sure where the extra effort is needed
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No, 'discretion' does not mean 'that anyone and everyone who uses trendlines, S/R and price patterns will never get rich'. Do you begin to know what you are talking about?

Discretion is the "the power or right to decide or act according to one's own judgment; freedom of judgment or choice;" or acting "at one's option or pleasure".

Trendlines, S/R and patterns may directly or indirectly comprise one system or more than one system. I am not defining what systems or methods others use.
:)
 
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