The Secret That Makes For a Successful Trader

[IFocus]

Cocoa leaves aren't much fun. Coca leaves on the other hand....

Thanks Wayne .......I think it might have been to much or not enough of chicha.....military types never change

 

[Trembling Hand]

TH I have and can only comment on what Ive seen.
Are you saying that your trading is successful inspite of M/M--T/M?
That if you critically look at your results you cant say that your success has been attributed to any one or more of the 3 listed above?

I will send you some more results then. :

Yes I agree you NEED M/M--T/M. in fact T/M could actually be THE skill needed.

While I can see where your coming from Id be suprised if you didnt agree that SOUND trading methods can be rescued and improved even turned spectacular with great M/M and Trade management.
More over M/M and Trade management will in the very large degree save most from ruin even with a flawed methodology. Which after all is extremely important.

Yep agree. But most never get to the SOUND trading methods.

 

[jersey10]

There is a whole industry/Rambling Bullsh!t going on about psychology and risk management and discipline but its all a scam.

I get ATLEAST one email a week from someone struggling with trading and they all have the same theme. Discipline/Psychology/Risk Blah Blah Blah.

What none of them say is I have developed these trading skills but risk management is stopping me making money.

GET SOME TRADING SKILLS thats the bloody secret. The rest is just looking after business.

If you were relatively new to trading, what / where / how do you think is the best way to go about getting some trading skills? Also, what are the most important trading skills to master in your opinion?

 

[cordelia]

For what it's worth...I think it is a balanced combination of all the things mentioned in the previous posts... Relying too much on any one aspect is ineffective IMO and it results in fantasizing about the market. Being able to look at the market and see what is actually there is the real skill. Not many people can do this...I have a hard time staying focused on what is actually going on rather than imagining what might happen..its a constant battle...It's all very well to plan trades but sticking to them is really hard and I think that is a real skill if you can consistently stay focused and not try to second guess yourself...

As for stops..I use them but often close out a position before my stop is triggered if I feel things aren't right....All the trades that my stops have been triggered I have known beforehand that I should have closed but have let imagination take over....

 

[MRC & Co]

Maybe one day when you have something to say that cuts through the bulls*** and can show some results you too can build a following. Until then just work on being more arrogant.:

Actually, that was meant to be a compliement.

 

[tech/a]

As for stops..I use them but often close out a position before my stop is triggered if I feel things aren't right....All the trades that my stops have been triggered I have known beforehand that I should have closed but have let imagination take over....

A better trait to have than watching price sail through stops because you "Feel" your analysis is right and price will turn around when all those other idiots realise how stupid it is selling such a great stock!

 

[Trembling Hand]

Actually, that was meant to be a complement.

I would type out an apology except I'm still trying to get the keyboard out of my mouth. :bonk:

 

[MRC & Co]

I would type out an apology except I'm still trying to get the keyboard out of my mouth. :bonk:

lol, no problemo, my arrogance shielded the blow!

 

[James Austin]

When we first start trading there are many holes in our dingy: risk management, trade management, money management, entry strategy, exit strategy, the very important trading behaviour and market experience, ie. “trading skill”.

If we don’t patch each and every one of these holes, and keep them patched at all times, then as sure as night follows day, our dingy will sink.

james

 

[MichaelD]

As for stops..I use them but often close out a position before my stop is triggered if I feel things aren't right....All the trades that my stops have been triggered I have known beforehand that I should have closed but have let imagination take over....

I can show you several big multi-R trades that came within a whisker of my stop loss before taking off for the sky.

The idea of getting out if things don't feel right is appealing...but may be flawed.

I've tested lots of stop methodologies to achieve the aim of getting out early when things "aren't right", but all of them to date have harmed expectancy.

I'm starting to think that all of our fiddling has more to do with our need to be in control than anything else and that the best mindset is to just accept what the markets provide at any given time.

 

[It's Snake Pliskin]

I'm starting to think that all of our fiddling has more to do with our need to be in control than anything else and that the best mindset is to just accept what the markets provide at any given time.

Interesting point MD.
And this is where the non-epistemocrats miss the point.

 

[strudy]

Great replies and posts.There were some good points made.And what is important is that it got you thinking.

Ok I confess. Risk management is only a part of the big picture.BUT it is an essential part, without it you are in trouble.And the same goes for Skill that is not enough on its own either

Of course you need skill,knowledge etc and you are never going to know it all.Though some think they do.

Remember we are all individuals and that comes to trading as well. What works for me won't necessarily work for you and vice versa.

So we keep on learning and this site is a great place to do just that.

Happy successful trading.

 

[white_goodman]

Great replies and posts.There were some good points made.And what is important is that it got you thinking.

Ok I confess. Risk management is only a part of the big picture.BUT it is an essential part, without it you are in trouble.And the same goes for Skill that is not enough on its own either

Of course you need skill,knowledge etc and you are never going to know it all.Though some think they do.

Remember we are all individuals and that comes to trading as well. What works for me won't necessarily work for you and vice versa.

So we keep on learning and this site is a great place to do just that.

Happy successful trading.

hear hear

 

[Wyatt]

Stumbled upon these sage words whilst browsing around the traps

http://www.collaborativefund.com/blog/the-psychology-of-money/

 

[Triathlete]

GET SOME TRADING SKILLS thats the bloody secret. The rest is just looking after business.

+1

 

[tech/a]

Specifically what are “ trading skills “
What are business skills
Life skills

Radge once told me
You’ll know when you can trade and what it is you need to trade
Profitably for the rest of your life.

I struggled with that for 5 yrs
He was right and I was amazed how simple it was/is

I had to look in all the wrong places to find the right place.

It’s ALL about the NUMBERS.

 

[Triathlete]

Specifically what are “ trading skills “
What are business skills
Life skills

Radge once told me
You’ll know when you can trade and what it is you need to trade
Profitably for the rest of your life.

I struggled with that for 5 yrs
He was right and I was amazed how simple it was/is

I had to look in all the wrong places to find the right place.

It’s ALL about the NUMBERS.

Yes I have to agree...trading is not as complicated as it looks but you need
to work out how and why... that is the hard part when starting out.

Even with what I have learnt I probably only use 30% but I have the other 70% in the toolbox if I need it.

 

[tech/a]

but you need
to work out how and why... that is the hard part when starting out.

How.
Buy low sell high --- buy high sell higher.
Sell High buy low ---Sell low ,buy lower

That's the HOW

Everything else that you "Think" is the how ---- is identification of an opportunity.
The how doesn't come until it happens. It is a consequence of allowing it to occur.

Why
Income exceeds expenditure.

That's the WHY

Everything else you "Think" is why is the consequence of MONEY and TRADE management.

The missing link

Confirmation.

(1) Years of trading your implementation of How and Why
OR
(2) Rigorous and repeated testing of your implementation of How and Why.

 

[Triathlete]

The missing link

Confirmation.

(1) Years of trading your implementation of How and Why
OR
(2) Rigorous and repeated testing of your implementation of How and Why.

This is the hardest part for a beginner in my opinion because what are they going to test (what methods, styles, timeframes...... this is time consuming and they give up......

What works in a Bull market just about everything...

What happen when the market is in a bear market or trading sideway ranges for years...This is when we find out who the traders really are....

 

[Wysiwyg]

How.
Buy low sell high --- buy high sell higher.
Sell High buy low ---Sell low ,buy lower

That's the HOW

Everything else that you "Think" is the how ---- is identification of an opportunity.
The how doesn't come until it happens. It is a consequence of allowing it to occur.

Why
Income exceeds expenditure.

That's the WHY

Everything else you "Think" is why is the consequence of MONEY and TRADE management.

The missing link

Confirmation.

(1) Years of trading your implementation of How and Why
OR
(2) Rigorous and repeated testing of your implementation of How and Why.

That's it in a nutshell Tech. Love concise explanations.