Quote from RedDuke:
Nicely said. However, none of this will help if a trader does not have an edge. Discipline is important, but not the most important factor, otherwise casinos would not exist. No discipline or money management will help you to win in roulette on the long run, the house simply has the edge.
Find the edge, then apply discipline/mm to use it properly.
DOM is not deceiving. Go to Spyderâs Futures thread and read the way he explained DOM can be used.
Regards,
redduke
This is classic newbie trader thinking mistake. The biggest edge in the market is not actually more knowledge it is you understanding YOU. Thats is your edge, the edge is not in a system as such because the same system traded badly will still see mounting losses in an account, e.g. poor stop loss management leading to early stop outs (fear of loss), fiddling with the trade parameters once in trade (poor discipline in sticking to your plan, how can you now expect to measure the success of the plan without the discipline?))
Talk of an edge in any systems must assume that you have already mastered yourself.
Disciplin is the most important factor. It is obvious that the odds are against you in roulette.. a disciplined trader would never allow himself to take the "trade" in the first place knowing that. Any edge in any system that is legal is not an overall edge it just has a higher chance of winning executions, that still isnt an edge.
Lastely, you are absolutely mistaken if you believe the DOM should be incorporated in to your trading style if you are below the advanced level.. please dont kid yourself..
It is you who are always the most limiting feature of any trade, not your system. There is a simple edge in telling you to buy weakness and sell strength in channeled markets operating within support and resistance... yet even knowing that does not guarantee success because HOW you trade that is a function of your beliefs and discipline in the market.
I understand your point, but I do feel this is exactly why many don't build thier accounts.. because they refuse to believe the main issue is themselves first...you are the edge not your system.. its not about accepting faults its about taking responsibility that every penny of loss is down to the WAY you traded whatever system you had... (if you even had a system you followed in the first place)
Lastly, I am not a fan of the Jack Hershey methods at this stage, I would rather concentrate or making success out of simpler strategies that also allow me to focus on my own discipline first in order to overcome my own tendency to take the odd impulse trade without defining properly exit entry maximum loss, profit ratio and prior to all of that building a case for the short or the long position using technicals over several time frames FIRST.
I am in no way connected with or even a subscriber to the following, but it has some interesting points to note:
http://www.thetradingauthority.com/promo/E-MiniMyths.php
Just my 2 ticks
Paul
