The dynamics of thought when becoming a trader

[jaronimo]

Quote from Granpa:

I soon start my 10th year of doing this for a living and really have to reevaluate my secrecy mode soon. I'm sort of amazed (and lucky of course) it has lasted this long, but I know the window is getting much tighter and I have to consider taking on a partner or two if I'm going to really get ahead in this game, muchless stay in it.

Why take on a partner? Trading is about learning and adapting. Start learning the skills you need to advance to the next level. You became profitable because you relied on yourself, don't go looking to rely on someone else at this point in the game.

Most of the time you will be disappointed in the stranger you bring onboard anyway. why bother? I bet you could ask for help on the parts you are unclear about and others will try to help you without you having to give away your hard earned secrets.

Good luck. I wish you well.

 

[Aisone]

Quote from jaronimo:

Why take on a partner? Trading is about learning and adapting. Start learning the skills you need to advance to the next level. You became profitable because you relied on yourself, don't go looking to rely on someone else at this point in the game.

Most of the time you will be disappointed in the stranger you bring onboard anyway. why bother? I bet you could ask for help on the parts you are unclear about and others will try to help you without you having to give away your hard earned secrets.

Good luck. I wish you well.

Thanks, you are the 'other' voice on my shoulder, the one whose voice I've been clinging to over time.

Just like you said, it has been very much about learning and adapting, technically and psychologically. But my fear is relying on that, and at some point not being able to for some reason. That drives the interest in working with someone with a math and statistics background to take things to the next level, before I get to the point of spinning my wheels.

The other real option is to take math and statistics classes myself. "If only I had started them years ago" comes to mind (and its no coincidence I didn't), but maybe in 5 years I'll be greatful I did.

 

[JimmyJam]

Quote from Granpa:

The other real option is to take math and statistics classes myself. "If only I had started them years ago" comes to mind (and its no coincidence I didn't), but maybe in 5 years I'll be greatful I did.

Take computer programming classes and learn how to automated your system.

Year 1: Baby steps first.

Year 2: Then casual walking.

Year 3: Then power walking.

Year 4: Then a jog.

Year 5: Then a run.

In five years you'll be watching the automated program make a ton of cash for you.

Good trading,

Jimm Jam

 

[fearless9]

Hello as,

Imagine if you will ETers fall into three groups.

1 ... fantasy traders who would have no clue as to what your rsi play is all about and have reservation about displaying their knowledge.

2 ... sim traders and back testers trying desperately to remove all risk.

3 ... Traders who know that there is nothing new about the markets and who could publish their method in the WSJ without changing the 95:05% ratio at all.

Who are you protecting yourself from?

 

[jaronimo]

Quote from Granpa:

Thanks, you are the 'other' voice on my shoulder, the one whose voice I've been clinging to over time.

Just like you said, it has been very much about learning and adapting, technically and psychologically. But my fear is relying on that, and at some point not being able to for some reason. That drives the interest in working with someone with a math and statistics background to take things to the next level, before I get to the point of spinning my wheels.

The other real option is to take math and statistics classes myself. "If only I had started them years ago" comes to mind (and its no coincidence I didn't), but maybe in 5 years I'll be greatful I did.

Why not pick up a few books on the subject. don't be offended by the titles, but some of the "dummies" books are pretty good. "statistics for dummies", etc will get you started, if thats what you are looking for.

Figure out what you want to accomplish and then pick up one of those books. they have them on every subject under the sun. I think if you lay out what you want to accomplish, a few books may get you there.

You may be surprised to find out you only need to do a few things to accomplish your goals and that you do not need a math degree and all the extras that that entails.

Why waste time with endless theories when you only need to understand a few formulas to get you where you want to go?

 

[nutmeg]

"Like I said though, I'm too paranoid to share with someone, particularly since once a math wiz who understand trading knows it, they won't need me, and also the 'secrets' might perhaps become far more explored by others than they are now."

Fwiw, might help to read how inventors have handled this situation.


"This brings me to my dilemma. To take my trading to the next level I need to quantify these potential opportunities much more mathematically than I am capable of."

Imo, that is the life cycle of any business. It is difficult to remain a one man operation if you want to grow or just when we sometimes outgrow our own capacity.

Both of these scenarios bring in the element of risk, and sometimes become the point of all or nothing. It is unfair but we are no strangers to risk.

 

[Anekdoten]

The real diamond is the skill of the trader. Something that cannot be taught, stolen or mimicked. Once this is realized and achieved your fear of losing the edge when sharing has zero validity because you are the edge.

Only my humble opinion.

Anek

 

[jaronimo]

Quote from Anekdoten:

The real diamond is the skill of the trader. Something that cannot be taught, stolen or mimicked. Once this is realized and achieved your fear of losing the edge when sharing has zero validity because you are the edge.

Only my humble opinion.

Anek

Thats absolutely true. Look at all the books out there where people spell out in detail how they trade. I see it on book reviews all the time. There will be 5 reviews saying the system does not work and 1 review saying it works great. its the same book they read, but most people just can't trade. so its easier to blame it on the author than to take responsibility for it themselves.

then there are all the people that can't trade with one indicator so they keep adding them and further confuse the picture. If you are patient and wait for the good trades, you can make money with every single indicator all by itself. Some are just better than others at different markets.

 

[rwk]

Quote from Anekdoten:
The real diamond is the skill of the trader. Something that cannot be taught, stolen or mimicked. Once this is realized and achieved your fear of losing the edge when sharing has zero validity because you are the edge.

That has been true, but I suspect times are changing. Traders are now coming up with automated trading systems (ATS) that anybody can run. Skill is still required, but now it is in building the ATS.

I have an ATS that just passed the 48-month milestone, and it has averaged 3.13% per month. I have a enough volatility in the equity curve to freak out many people, so maybe there is still some skill in running it.

I sometimes share experience and knowledge, but I think I would be a fool to talk specifics about how my ATS works. It's greatest limitation is that it does not scale well. Size will kill it.

[rwk]

 

[Anekdoten]

Rwk,

Still it requires the skill of the trader to develop it because when it stops working, and most if not all don't work forever, you would need to go back to that skill to re-enforce it or re-create it.

Anek