ExperiencedJoe : is there a place where all these steps are gathered?
Also, what about the 80%+ of funds that lose money : did they not follow the steps?
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Will i ever get it.
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ExperiencedJoe : is there a place where all these steps are gathered?
Also, what about the 80%+ of funds that lose money : did they not follow the steps?
The problem with the above though is most retail traders have no clue what they are doing. So trying to not make their mistakes isnt a great way forward imo. its about as advancing as saying dont lose money.
The practice practice practice mantra will not help either if you dont know what to practice. In reality practising the wrong thing is moving away from your goal.
Revisiting the poker analogy I would say studying a winning player plus studying the other types of players at the table will advance you. Then select the easiest table you can find and practice emulating the winning trader. I am rubbish at poker but I think the pros refer to losing players as fish.
I remember Warren Buffet wrote somewhere ( though he is an investor, but after checking compounding it has some validity for trading) :
Rule1: don't lose money
Rule2: don't lose money
Rule3: see rule1
Sooner or later a retail trader will start losing money.
The real problem for retail is "how to lose", aka "losing to win".
Now, there are tons of trading plans out there, even software and signals.
My advice for a retailer is to get one of these, start with a tiny account, work on their mistakes, and keep practicing. It is a question of time till the circuits linked to whatever
plan the trader has chosen build up in the brain.
The retail trader might as well exploit his best "tool" : his nervous system circuit.
The difficulty : discipline. Hence psychology work fully recommended.
Ridiculous. Do the hedge funds not follow similar steps, and use similar metrics to measure risk and performance ? Do they not produce proven profits ?
The reason retail fail is precisely because they are not following the well defined steps. Financial trading is like every other business. If the right steps are followed, profits result.
EJ I have observed your posts. You are a troll. No hedge funds dont follow well defined steps, the majorty lose money and shut down. Are you aware of survivorship bias? Trading is NOT like every other business. Does every other business require you to earn money from your competitors? Let's say I open a pizza takeaway business. Does my turnover come from the losses of other pizza shops?
ExperiencedJoe : is there a place where all these steps are gathered?
Also, what about the 80%+ of funds that lose money : did they not follow the steps?
Sure there are places. Warren buffet's house has these steps in it. They are also at various hedge fund's offices. I have them too. This is why I considered the the idea of the non-existence of them ridiculous. How can what I have and hold be not there ?
I have no idea how many hedge funds fail. If you have a source then link them here. I am not going to take your word for it.
Funds can fail for various reasons other than trading. Not being able to find investors could be a major one.
The difficulty : discipline. Hence psychology work fully recommended.
I used to think this also. Yes psychology and discipline are important if you have a small edge. If you have a real solid edge though this psychology and discipline mantra is way over blown. Imagine having an 80%+ edge. simple 1:1 RR and basic money management will reap large profits. even if you have a few lapses of discipline you will likely do fine. Personally I would counsel new traders to focus on game selection and edge.
EJ I have observed your posts. You are a troll. No hedge funds dont follow well defined steps, the majorty lose money and shut down. Are you aware of survivorship bias? Trading is NOT like every other business. Does every other business require you to earn money from your competitors? Let's say I open a pizza takeaway business. Does my turnover come from the losses of other pizza shops?
Do people think personal attacks improve their case ? I don't believe so. If true, I'd like to see evidence. So I don't understand why you deliberately weaken your own case. It's neither logical nor wise, nor beneficial to your own interest.
Your pizza shop would earn its money from the customers. The market shop earn their money from their customers, meaning you and others like you. Is the parallel now clear ?
The pizza shop buys low sells high. The market shop buys low sells high. You can switch the manger in these shops and they would be just as profitable as before. The business is essentially similar, just different names for the products.
Do people think personal attacks improve their case ? I don't believe so. If true, I'd like to see evidence. So I don't understand why you deliberately weaken your own case. It's neither logical nor wise, nor beneficial to your own interest.
Your pizza shop would earn its money from the customers. The market shop earn their money from their customers, meaning you and others like you. Is the parallel now clear ?
I am glad you wrote the above as it shows your ineptitude. I quote it in full to preserve it from your likely edit. Happy trolling.
The pizza shop buys low sells high. The market shop buys low sells high. You can switch the manger in these shops and they would be just as profitable as before. The business is essentially similar, just different names for the products.
Haha very funny.
I am glad you wrote the above as it shows your ineptitude. I quote it in full to preserve it from your likely edit. Happy trolling.
Quote again, I have added more. What I present are the holy grail stuff. People can make money off it if they have what it takes.
Sure there are places. Warren buffet's house has these steps in it. They are also at various hedge fund's offices. I have them too. This is why I considered the the idea of the non-existence of them ridiculous. How can what I have and hold be not there ?
I have no idea how many hedge funds fail. If you have a source then link them here. I am not going to take your word for it.
Funds can fail for various reasons other than trading. Not being able to find investors could be a major one.
http://ftalphaville.ft.com/2014/07/31/1913792/most-hedge-funds-fail/
From Financial Times addum.
As you have them too : do you mind PM these?