The market cannot defeat you

[pairsarb]

I was thinking ... I think to be a good trader one needs to interact with the market, rather than looking at defeat/win// etc. Kind of like in the flow. In the flow means trades are profitable, and when you are out of the flow, you step aside. I lost money both days so far this week...no problem. The tough par tis how I lost. Seemed to be fighting my setups....trying to make the trade go my way. I got out at my day's loss stop, but it's a bummer.

I do stick to what I said, when I stick to these limits on losing days, I have profitable months. But I will have to admit, on days when I am in the zone, where literally every trade is a winner, it's hard to go back to days of losing a little each day. Have to just learn that this is my way....it works. Not what I thought traidng would be when I started.

 

[DrEvil]

I used to be part of the 90% that constantly payed out to better traders. Looking back, I know absolutely that I lost money out of my incompetence ... ie. misusing indicators, trying to trade off short time frames without consideration of a larger time frame ... etc I could go on all day. I was really crap.

Anyway, I turned that around and now when I get stoped out it's purely because I am dead wrong on the trade. Also, I don't use indicators now.

 

[pairsarb]

well indicators only indicate what happened in the past. it's particularly true of developing non robust systems based on these indicators. however, hard to say that indicators do not help. if an indicator gives you more confidence to follow your trading rules, it's probably a good thing to use. that being said, the best indicator is probably the last trade price

some weeks trading is so...boring...when i lose little bits of money here and there, and nothing really pops. i believe that boredom is a part of successful trading, however. it's like a psychological pullback that keeps my brain rested for the more happening days/weeks. best strategy don't lose much during the boring times..imho.

 

[Buy1Sell2]

Quote from Buy1Sell2:

As I sit here contemplating the cross of the precipice into 2007, I am comforted by a sense of calm. I know through common sense that 2 of the main secrets to successful trading are position sizing and loss control. I know that I cannot be pushed out of the market. I am the only one that can destroy me. I am hopeful that
I may be able to influence one or two folks in the right direction. Happy New Year All.



By the by, I would like to hear from someone who believes the market is in control of their account(s)

Wondered if 2 years on, there were any thoughts from folks who believe the market is in control and not them--Ishmael

 

[DrEvil]

Quote from Buy1Sell2:

Wondered if 2 years on, there were any thoughts from folks who believe the market is in control and not them--Ishmael

The market is in control of the price, that's all. Everything else is up to you, but you know that already

 

[Buy1Sell2]

Whether you define defeat as wipeout or just less than exemplary returns, it is still you, the trader that can defeat you. The market cannot.

 

[HATEtheRisk]

Quote from Buy1Sell2:

Only you can do that.

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That is correct, you can sit down.


by the way, you dont trade against "the market" or other "traders",you only trade against yourself, sound illogical ???

against the lazy side of your personality. Because as a pro trader, the only time when you should loose any money, is when you do not follow your rules to 100%, and that can happen when the lazy boy in yourself becomes stronger.

So FIRST you have to defeat yourself (the bad lazy kind of you) than you can defeat the "markets".

Once you re there, there is no market to defeat, you just trade what the market tells you - go with the flow.

 

[HATEtheRisk]

this is how trading really is.

you are the cat.

the dogs are the brokers.

its hard but not immpossible.

 

[sametrade]

Quote from HATEtheRisk:

this is how trading really is.

you are the cat.

the dogs are the brokers.

its hard but not immpossible.

You want to make a guaranteed profit from the markets? Open a brokerage and ride the volume that comes with volatility.

 

[eusdaiki]

Quote from HATEtheRisk:

----------
That is correct, you can sit down.


by the way, you dont trade against "the market" or other "traders",you only trade against yourself, sound illogical ???

against the lazy side of your personality. Because as a pro trader, the only time when you should loose any money, is when you do not follow your rules to 100%, and that can happen when the lazy boy in yourself becomes stronger.

So FIRST you have to defeat yourself (the bad lazy kind of you) than you can defeat the "markets".

Once you re there, there is no market to defeat, you just trade what the market tells you - go with the flow.

Sooner or later the market will change, your edge will vanish and you will need to make new rules. That's one of the hardest aspects of trading, adapting to ever changing market conditions.
So, it is not true that you only need to follow your rules to never lose money. Even when following rules you need to accept risk and adapt to the market if you want to survive in the long run as a pro trader.