The Top Seven Reasons Why 90% of Daytraders Fail

Every reason in here is like removing blame from the system. All of the other aspects do not matter. Trading too big for your account, ok, if you had a working system that wouldn't be an issue. Cutting winners too short wouldn't be an issue if you had a winning system. Letting losers last too long wouldn't be an issue if you had a winning system. Over trading wouldn't be an issue if you had a winning system.

This is like if you're trying to draw. But you don't know how to draw. Note I did not say you don't have the mental strength to draw. I mean you don't know how. That's the system. You can get better paper, better markers, better easels, better whatever. You can study drawing all day. You can talk to famous designers. These things won't make any difference if you don't know how to draw. Being emotionally ready to trade, etc. does not matter and is not the biggest problem if you do not have a winning system.
 
Edge with defined positive expectancy . Both sides of expectancy need to be measurable accurately ... trade success % and R/R are the basis for a successful DTer .. 99% will have no idea on accurate definitions of either . If you are not a Quant you have next to zero chance of making it as a DT . Drawdown is your enemy , only Quants got a handle on calcing max DD and controlling trade size to maintain acceptable levels of DD without hurting returns too much ... the sweet spot . Most DTers are morons , intelligence required ...
 
brisvegas said:
Edge with defined positive expectancy . Both sides of expectancy need to be measurable accurately ... trade success % and R/R are the basis for a successful DTer .. 99% will have no idea on accurate definitions of either . If you are not a Quant you have next to zero chance of making it as a DT . Drawdown is your enemy , only Quants got a handle on calcing max DD and controlling trade size to maintain acceptable levels of DD without hurting returns too much ... the sweet spot . Most DTers are morons , intelligence required ...
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I agree that from E(x) you've got everything.
Just derive some other numbers, and try to hack it.
Then try to implement these hacks you found in order to beat it.
However, one needs common sens and experience too for achieving success.
And no need to be a quant to manage his drawdowns and positions.

Newbies focus on Gains. When Traders focus on Loss.
We're risk taker. Risk is our raw material. It ain't for everyone.
That's a dangerous venture. You can end broke. But not if you master it.
 
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