I believe it is important to distinguish between "thinking" and "second-guessing."
What good is a brain?
- Thread starter lindq
- Start date
I believe it is important to distinguish between "thinking" and "second-guessing."
Well, what's the diff? If your system generates a trade and you "think" about it, isn't that "second guessing"?
And if you "think" about what your system has told you, are you defeating the purpose of your earlier work in creating the system?
That's the point. Why put thousands of hours in developing a solid system, only to "think" about a trade when it develops? As an earlier poster so well pointed out, in "thinking" aren't you just putting yourself into the emotional turmoil of the masses, and isn't the purpose of a system to avoid that?
For me, "thinking" about a trade has been counterproductive. Sad, but true.
I enjoy thinking. Thinking never gets me fu*ked up. But I use brainpower to create and to keep fine tuned my system.
Heres what you should not do. Do not let the emotional power of your brain intervene to make you stray from your system or to override your system or to make you think you should try to cherry pick from it.
I assume in making the above comments, a backed tested and market played system that is reliable.
For me this means data, parameters and filters which together give me a very reliably predictive system (ie DOW) to use daily.
Heres what you should not do. Do not let the emotional power of your brain intervene to make you stray from your system or to override your system or to make you think you should try to cherry pick from it.
I assume in making the above comments, a backed tested and market played system that is reliable.
For me this means data, parameters and filters which together give me a very reliably predictive system (ie DOW) to use daily.
Don, how about a market-making system?
Systems developers constantly monitor performance based
on objective statistical measurements and modify as the stats
dictate.
Systems fade over time, and a good system developer will know
when to take it offline.
If someone states that human discretionary traders dont
effectively do the very exact same thing, via online experience,
then I would call bullshit.
System traders and discretionary traders are not that different.
System traders just prefer to do their homework up front with less risk.
peace
axeman
on objective statistical measurements and modify as the stats
dictate.
Systems fade over time, and a good system developer will know
when to take it offline.
If someone states that human discretionary traders dont
effectively do the very exact same thing, via online experience,
then I would call bullshit.
System traders and discretionary traders are not that different.
System traders just prefer to do their homework up front with less risk.
peace
axeman
Good question. As I generally buy pullbacks, there is always some fear in play. If the overall market is pulling back, I may also fear putting too much capital on the line with an increasing number of system alerts, despite the fact that I know damn well that this is typically the time to be very aggressive.
Then there are the reasons stocks are pulling back. (Is this really bad news? Does this analyst know something I don't? Etc. Etc.) Is there widespread fear in the market that's being reported in the news? Should I just not listen to the news at all? (I say listen, my system says DON'T!)
My theory is that there are two main reasons why we let our brain get in the way more often that not.
1. It will happen if we don't have complete confidence in the system we are trading, which so often happens if you are trying to trade a system you didn't develop.
2. It will happen because we all feel we need to "work" for a living, and we think that profits should not come without constant effort. That work ethic is drilled into us for decades of education, and years more of professional advancement. But it is often not supportive of good trading, especially after one has learned the ropes and developed a system that can run somewhat on automatic, if even for a short amount of time.
As with MANY aspects of trading, what we have learned in the past...and how we've even learned to think at all... can often get in our way.
Pretty tough to do because of the need to accomodate large priints at times...we already use (well planned) enveloping programs with success.
But, feel free to send me a PM with details...
Don
Change my mind about what?Quote from Don Bright:
Sorry Sam...but since Currency trading is so far off the radar, BT would never get involved in that game. And since you are already trading, you should be able to check back with us in 6 months, either disenchanted with that type of trading completely, or in control of much more than $million.
The offer stands for any serious listed equity trader (we trade where we find the edge)...the same comments apply to all systems, but if you're going to have any sort of "system" - then it should be focused on a "winnable" game (IMHO).
If you would like to change my mind (anything is possible)...fax me copies of your sheets for the next 3 months (keep your secrets and system to yourself of course)...and I will review them.
Don
Currency trading is the future, man. Besides, trading is trading.
But, whatever. I don't think you have ten dollars let alone a million.
I think you're just a blowhard.
Sam