Three Laws in Trading

A

alex.samant

hey. these are 3 laws that are commonly broken by the majority of traders, kinda explaining why the grim statistics with regards to the average success rate of a trader.

1) Nothing that happened in the past (near or far) has the power to influence what will happen in the future (near or far)

2) The outcome of your trade will depend 100% on your money management decision based on the present moment

3) Your trading routine has to be part of your life and NOT the other way around


Just a little something to think about .... ;)

Cheers y'all
 
Quote from alex.samant:



3) Your trading routine has to be part of your life and NOT the other way around
More...

Explain how it would be the other way around?

Thanks
 
the failure of traders is many traders start to gamble and make easy money instead of trading(working).

people with a gambling problem, don't open a trading account.

also people without a gambling problem will develop a gambling problem in the largest tax free unregulated casino in the world.

only place they lend money on margin and is directly linked to your bank account.

Quote from alex.samant:

hey. these are 3 laws that are commonly broken by the majority of traders, kinda explaining why the grim statistics with regards to the average success rate of a trader.

1) Nothing that happened in the past (near or far) has the power to influence what will happen in the future (near or far)

2) The outcome of your trade will depend 100% on your money management decision based on the present moment

3) Your trading routine has to be part of your life and NOT the other way around


Just a little something to think about .... ;)

Cheers y'all
More...
 
Quote from Optional:

Explain how it would be the other way around?

Thanks
More...

It's easy.

A lot of traders spend a huge amount of time looking for that strategy that "works" and when they think they found it they try changing their entire day to fit that routine.

Normally, you need to decide when you are most comfortable trading and start looking for an approach o fit your existing life or your personal style.

There are some people (like myself) who don't like to wait an entire day for some breakout and do nothing until that moment. It's a mistake to not take your personal profile into account.
 
Quote from alex.samant:

hey. these are 3 laws that are commonly broken by the majority of traders, kinda explaining why the grim statistics with regards to the average success rate of a trader.

1) Nothing that happened in the past (near or far) has the power to influence what will happen in the future (near or far)

WRONG. Indicators, patterns, seasonal trading, price action and other things are almost always used to influence the future

2) The outcome of your trade will depend 100% on your money management decision based on the present moment

WRONG. Many people exit when their signal flips or suggests getting out. That is not money management, but trade management

3) Your trading routine has to be part of your life and NOT the other way around

WRONG. This is just a guess on your part.
More...
 
TraderZones.

I appreciate you disagreeing. Everyone is entitled to his or her own opinion, but when you say "WRONG" you imply that your statements are RIGHT and therefore the absolute truth.

You could have simply said that you disagree and offer some counterarguments.

I could argue with your reply point by point but i don't really feel like writing so much.

However, please bear in mind that neither you nor me hold the absolute truth.
 
my take

1) have a strategy that has an edge
2) cut losses early let gains run
3) bet size as function of account size and max loss expected on the trade



Quote from alex.samant:

hey. these are 3 laws that are commonly broken by the majority of traders, kinda explaining why the grim statistics with regards to the average success rate of a trader.

1) Nothing that happened in the past (near or far) has the power to influence what will happen in the future (near or far)

2) The outcome of your trade will depend 100% on your money management decision based on the present moment

3) Your trading routine has to be part of your life and NOT the other way around


Just a little something to think about .... ;)

Cheers y'all
More...
 
sounds like you advise beach and sofa traders to find a way to trade while lying at the beach or watching their favorite tv show. Trading is hard work and you need to fit your life style and everything around it to this endevor nothing else I would claim works.

Quote from alex.samant:

It's easy.

A lot of traders spend a huge amount of time looking for that strategy that "works" and when they think they found it they try changing their entire day to fit that routine.

Normally, you need to decide when you are most comfortable trading and start looking for an approach o fit your existing life or your personal style.

There are some people (like myself) who don't like to wait an entire day for some breakout and do nothing until that moment. It's a mistake to not take your personal profile into account.
More...
 
Quote from asiaprop:

sounds like you advise beach and sofa traders to find a way to trade while lying at the beach or watching their favorite tv show. Trading is hard work and you need to fit your life style and everything around it to this endevor nothing else I would claim works.
More...

you noticed well. and yes, our opinions are 180 degrees from each other. :)
 
also sounds like your opinion is in stark contrast to what every trading veteran would tell you. Let us know if you find a seasoned trader (seasoned implies a successful career) whose business did not at times severely interfere with his marriage and family life, who was not woken up in the middle of the night by his brokers because of breaking news elsewhere couple times a year, who has not sat in the office beyond 9-10pm uncountable times when others left at 6pm. This is not because he had to but because of his passion for his chosen career path and because he knew it often times took those sacrifices to be ahead of the curve.



Quote from alex.samant:

you noticed well. and yes, our opinions are 180 degrees from each other. :)
More...
 
You must log in or register to reply here.
Back
Top