too much emphasis on defense in trading

M

marketsurfer

hi,

it is my contention that there is entirely too much emphasis place on defense instead of offense in the field of trading.

having a good offense is the key to making money in the market, defense will simply keep you liquid longer. most of what i have read ( extensive ) in the field stresses defensive tactics or how not to lose, instead of workable, aggressive offensive trading manuvers. aggressive is the key, and the ONLY way not to slowly grind away by placing too much emphasis on defense.


any thoughts?

surfer
 
Quote from marketsurfer:

hi,

it is my contention that there is entirely too much emphasis place on defense instead of offense in the field of trading.

having a good offense is the key to making money in the market, defense will simply keep you liquid longer. most of what i have read ( extensive ) in the field stresses defensive tactics or how not to lose, instead of workable, aggressive offensive trading manuvers. aggressive is the key, and the ONLY way not to slowly grind away by placing too much emphasis on defense.


any thoughts?

surfer
More...

Hi,

Excellent post. Take a look at what defensive trading (2004) Vs. offensive trading (2005) have done to my system on collective2.

Here's the link: http://www.collective2.com/cgi-perl/systems.mpl?want=publicdetails&systemid=9700583&873
 
The key to a good offensive is timing. Get on the deffensive side just long enough to launch your offensive at the right time.
 
Quote from marketsurfer:

hi,

it is my contention that there is entirely too much emphasis place on defense instead of offense in the field of trading.

having a good offense is the key to making money in the market, defense will simply keep you liquid longer. most of what i have read ( extensive ) in the field stresses defensive tactics or how not to lose, instead of workable, aggressive offensive trading manuvers. aggressive is the key, and the ONLY way not to slowly grind away by placing too much emphasis on defense.


any thoughts?

surfer
More...

Hello Surfer: Nice post. You ended with: "..any thoughts?"
OK.. I'll suggest that your thoughts would be best used after more than enough time is spent on working with defence first.. I'll base that on having made my share of mistakes over the last 39 years of investing.. and watching other during those years.

Defence first and then go into the offence mode as much you can. Your point seems to be taken by many top Poker players that can now be watched on TV such as Gus Hanson etc.. But I sumit Gus Knows defence very well first before he starts raising the pot.
agpilot ..know both when to hold'em and when to fold'em.
 
Quote from marketsurfer:

hi,

it is my contention that there is entirely too much emphasis place on defense instead of offense in the field of trading.

having a good offense is the key to making money in the market, defense will simply keep you liquid longer. most of what i have read ( extensive ) in the field stresses defensive tactics or how not to lose, instead of workable, aggressive offensive trading manuvers. aggressive is the key, and the ONLY way not to slowly grind away by placing too much emphasis on defense.


any thoughts?

surfer
More...


screw the defense --- stay on the field in offense the whole game and keep scoring!!! watch the other teams defense sit on their butts all game drinking gatorade! :D


btw, i could not agree with you more! :) very smart thread you have here --- good to make people THINK!
 
marketsurfer,

I think you mean offense as in pyramiding?

Because you are right, the best traders do pyramid and have their biggest position when they are very right.



Even with pyramiding, there needs to be good defense..


What do you mean by offense if not pyramiding? :)
 
Quote from marketsurfer:

thanks options. nice performance! happy to see that someone understands what i am trying to say...

surfer :)
More...

You bet. Now if only I can get my average win to meet or exceed my average loss + maintain the same accuracy...:)
 
Nice stuff....When you can get an "EDGE" in your signals, system, ....GO FOR THE GUSTO!!!!!!


Here is my thought about adding-on to a profitable trade. I do not do it,... Well, i have, but in general no.

But, i will do this: If the setup looks really good, if I feel good, if i have confidence in my intuition, then i go bigger on the entry, twice as much as normal.

I keep it simple as stated, i prefer to get in with the same amount every time and exit all at once, i do not do the tap dance around a profit or a loss.

Aggression actually works...i feel more alive when i am more daring. Again, if one has an EDGE, use it.... :)

Pyramiding to me is not getting consistent, it increases your risk relative to the profits expected. That goes back to my intentions when first entering a trade, i leave the profit open ended as a good trader should. Whenever i added-on i usually gave back the accrued profits and spoiled a good trade.
 
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