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They're good posts but they're not about how to get good at discretionary trading. That's the theme of the thread.
Discretionary trading attitude
- Thread starter Gringotts Bank
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They're good posts but they're not about how to get good at discretionary trading. That's the theme of the thread.
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From the OP it appeared that the theme of the thread is about the psychological aspects of discretionary trading rather than how to develop a good discretionary trading system?
And the way you can get good psychologically is by having a good system to trade that gives you confidence to trading it.
What is it that you want to discuss exactly?
tech/a
No Ordinary Duck
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(1) Keep your Capital working constantly---don't stay in trades going no where.
(2) Only take trades which are moving in your direction IMMEDIATELY.
(3) Move stops to B/E as quickly as possible.--Losing brokerage is no biggie
(4) Be quick to sell losers be slow to sell winners ---BUT see 1
(5) Re invest profit.
(6) Compound quickly.
(7) Be decisive.
(8) Have a re entry plan.
Should get you started.
This all presumes you have a proven profitable trading method.
(2) Only take trades which are moving in your direction IMMEDIATELY.
(3) Move stops to B/E as quickly as possible.--Losing brokerage is no biggie
(4) Be quick to sell losers be slow to sell winners ---BUT see 1
(5) Re invest profit.
(6) Compound quickly.
(7) Be decisive.
(8) Have a re entry plan.
Should get you started.
This all presumes you have a proven profitable trading method.
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Thanks tech.
Most (not all) of the replies suggest discretionary trading is not a good method. You and a few others are saying it's possible so long as you are using a system as a base. Since the most highly successful traders are purely discretionary, I want to know what it is they do. Are they secretly applying a system, or are they watching the price/depth and using their highly developed gut feel.
My assumption is that they are watching the price and applying gut feel, and that's why I'm doing this exercise. Having an accurate gut feel depends strongly on psychological factors, imo.
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ok, I made an assumption that purely discretionary trading has a psychological basis, when it's successful. I want to focus on only those two aspects, not system development for the moment.
I undertstand what you're saying about psychology being a secondary thing when your system is good - makes sense., But I'm not investigating that as such.
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Van Tharp states that we all trade our beliefs of the market. If you GB believe that discretionary trading is relying on intuition (gut feel) without any structure or processes then examine that belief and see if it is useful to you. How can you develop a skill that is undefined and unstructured?
I believe that a discretionary trader starts with a structured approach with only minor discretionary elements, masters one strategy then adds another suited to different market conditions, masters each additional strategy and ends up with multiple strategies and able to trade all market conditions. Any intuition that develops is based on extensive experience in knowing which strategy to apply to the current market and be able to rapidly adapt to changing market conditions.
This belief gives me a course of action to follow as I continue to learn.
I believe that a discretionary trader starts with a structured approach with only minor discretionary elements, masters one strategy then adds another suited to different market conditions, masters each additional strategy and ends up with multiple strategies and able to trade all market conditions. Any intuition that develops is based on extensive experience in knowing which strategy to apply to the current market and be able to rapidly adapt to changing market conditions.
This belief gives me a course of action to follow as I continue to learn.
tech/a
No Ordinary Duck
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No I'm not saying that at all.
They WILL know that what they do gives them an edge.
All traders who want to turn 10 k into 1 million in a few years believe there are a secret few who can do this regularly.
Truth is if your LUCKY enough to place yourself in front of the opportunity train and it leaves with you on it and you have enough on it----you'll be one of those mysterious discretionary geniuses.
Trembling Hand
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Peter I'm with you 100%. I'd like to add the bit which is bolded is a higher level skill which will never develop if the foundations of your skills are lacking. You may from time to time get in sync with whats going on but its the ability to do it day in day out that comes from amassing and refining many SKILLS over many many hours. There is no mystery to it just far far more hard work than 99.9% of the population is willing to do.
GB if you cannot align your thinking with what Pete has here its pointless me adding any more. We might as well go argue with the pope about no such thing as god.
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7 bets since yesterday.
Starting $407
Ending $450
Gain 10% ($43)
I'm basically following Douglas' technique. (Trading in the Zone). Great book, by the way, if a little repetitive.
Starting $407
Ending $450
Gain 10% ($43)
I'm basically following Douglas' technique. (Trading in the Zone). Great book, by the way, if a little repetitive.
tech/a
No Ordinary Duck
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Why do you ask for help when advice is totally ignored?
CanOz
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I reckon GB just likes winding you guys up!
Otherwise, i can't figure it out either
CanOz
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It wasn't ignored. I considered every word.
I'm doing an experiment. I want to find out if I am right or they are right. Or both. What Peter says makes perfect sense, but things can make perfect sense and still be wrong, so I need to test my hypothesis.
This is something that no one has done before - separating the psychological aspect from the technical aspect in order to find out which has more influence on the bottom line.
Trembling Hand
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Because to be an expert at anything one needs to engage in 1000s of hours of,
deliberative practise; Which is by its very nature very hard to do. Its monotonous, its painfully, it requires you to repeatedly step outside of your comfort zone. Basically its like sticking bamboo shoots up your finger nail beds.
Much easier to fool yourself with mystic and excuses..... join the 95%
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Why don't we have a challenge?
Both of us post live stock trades, entry and exit prices.
You use your method and I'll use mine new method.
Trembling Hand
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Sure, but i don't trade stocks. Futs no probs.
tech/a
No Ordinary Duck
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What your the first?
The trading community waits with baited breath!
I smell a Nobel prize .
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You've never traded stocks?
tech/a
No Ordinary Duck
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PAV and I have 26% in 8 weeks --- that help.
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No, you have to post your trades live for everyone to see. That way if I win, you and TH have to publicly admit defeat and eat humble pie for the first time in the history of ASF.
: The upside for me is fantastic.
Trembling Hand
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My point is that I have expertise in something due to practise -futures trading.
Your point seems to be you can think you're a good trader therefore you are. Remember your comment about effecting the bid/ask spread with your confidence level. LOL.
My will be real trades. Yours will be BS.
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