"Winners quit all the time. They just quit the right stuff at the right time."
Archives of “January 13, 2019” day
rssDiscretionary & Systematic Traders
Discretionary Traders…
- …trade information flow.
- …are trying to anticipate what the market will do.
- …are subjective; they read their own opinions and past experiences into the current market action.
- …trade what they want and have rules to govern their trading.
- …are usually very emotional in their trading and taking their losses personally because their opinion was wrong and their ego is hurt.
- …use many different indicators to trade at different times. Sometimes it may be macro economic indicators, chart patterns, or even macroeconomic news. Many discretionary traders are trying to game what they believe the majority of other traders will be doing based on market psychology as if it is one big poker game.. They are trying to form an opinion on what the market will do.
- … generally have a very small watch list of stocks and markets to trade based on their expertise of the markets they trade.
Systematic Traders…
- …trade price flow.
- …are participating in what the market is doing.
- …are objective. They have no opinion about the market and are following what the market is actually doing, i.e. following that trend.
- …have few but very strict and defined rules to govern their entries and exits, risk management, and position size.
- …are unemotional because when they lose it is simply that the market was not conducive to their system. They know that they will win over the long term.
- …always use the exact same technical indicators for their entries and exits. They never change them.
- …trade many markets and are trading their technical system based on prices and trends so they do not need to be an expert on the fundamentals. (more…)
Taking Advantage of BJP ?
You Are Doing These 15 Things & You Are Losing Money In Market
Egos.
Emotions.
Not respecting the mathematical risk of ruin.
Gurus. (TV Analyst +Those Talking about Fundamentals )
Television.(Avoid BLUE CHANNELS DURING TRADING HRS )
Trading without a methodology.
Trading with no trading plan.
Stubbornness.
Trading without a stop loss.
Trend fighting in your time frame.
Over trading.
Taking bad entry set ups.
Copying someones trades with no knowledge of their position sizing or time frame.
Not knowing how to take profits in a winning trade while they are there.
Not doing the proper homework before trading.( We Think to Trade for 5 hours Daily ,U need to sit 5 hrs after after mkt closes and to make Next Day Strategy )
Dream Big…Nothing else.
Trading psychology
The market is always right–except at significant tops and significant bottoms.
Keep and open and flexible mind. When in doubt, get out.
If you must have a guru, take him or her with many grains of salt
Do not add to losing positions.
Try every day to make yourself stronger, better and more integrated as a person.
Stay true to yourself. Lying to yourself and others, and trading on hope and prayer do not work
Most importantly, accept and recognize that you are not perfect. You are human and are going to make mistakes. Trading is the only profession where losing is actually winning. BUT— unless you accept mistakes as mistakes and learn from them, you will not progress and be upside down. Unless you are able to get your trading brain out of the cave you will not accumulate regret. It is only through the true acceptance of a mistake as a mistake that we accumulate regret. This is how we learn and grow as traders and human beings.
This is Really Great
Deal with problems you understand …
VALUE OF TRADING
The value of trading, properly conceived and exercised, is that it can become a vehicle for self-development. If not properly conceived and executed, trading can become an addictive and destructive activity. Good trading is trading that is self-determined, self-enhancing, and rewarding in terms of personal and financial development; bad trading reinforces and repeats the negative patterns that hold us back in life. It is rare to find activities that reward you financially for your growth and development as a human being. That is one of the great appeals of trading. – Brett Steenbarger
Thought For A Day
