Dickson Watts (PDF) has been dead for decades, but his wisdom never dies. Some fine lines:
“Many lean, few lift.”
“The man who conforms never transforms.”
“Rest with descending wave; mount with the ascending wave.”
“There is many a slip between the cup and the lip, but only one slip between the cup and the ground.”
“The unpardonable sin — not to make money.”
“Some men are alive after they are dead; others are dead while still alive.”
We Know Traders had lost TONS of Money in India and they blame Market for it.
Many Factors work :If u learn to read chart for 10000 hrs and if u read 10-50-100 books on Trading Psychology +Avoid Fundamentals ,Growth Story of Country…..u can become Great Trader.
My whole approach is geared towards controlling risk, and keeping losses as small as possible. This means knowing when and where I am going to exit a losing trade (as well as a winning one) allied to risking only a small element of equity on each position. It is only by doing this can I achieve a positive expectancy with a low win rate.
With losing trades, I will open the position when my entry price level is hit, but if it doesn’t start to move in my favour, then I will get out pretty damn quick. I want to eliminate the possibility of a small loss becoming a big loss. I don’t even wait for my initial stop to be hit – a lot of my losing trades are closed within 24 hours of being opened. This keeps me in the game, keeps my equity intact, and helps to avoid the stress that comes with big losses or drawdowns.
In the eyes of the vast majority, these things are blurred together, and very many things that the herd get up to in the name of “trading” is really either speculating or gambling. To that end, much of the advice published on the subject of trading can equally be as confused.
Famed Stanford University psychologist Leon Festinger once said, “A man with a conviction is a hard man to change. Tell him you disagree and he turns away. Show him facts or figures and he questions your sources. Appeal to logic and he fails to see your point.”
Although trend following has been one of the most successful trading strategies for decades, some critics downplay the massive profits accumulated by trend followers, arguing there are just a few chance winners — “lucky monkeys,” they claim.
BEAT THE AVERAGES
Not true. Large numbers of trend followers have found a way to outpace market averages. They have done so with hard work and the ability to stick with a trading plan — usually for a very long time. Some argue, “There’s no romance in trend following.” The romance is found in returns. Money is the ultimate aphrodisiac.
PROFITS COUNT
Think of it this way: Performance data examples from the great trend followers could be the foundation of every college finance class. When you show up on the first day, instead of your teacher handing you a syllabus and telling you to buy certain books, you are handed one piece of paper that simply shows the performance histories of professional trend following traders for the last 50 years. (more…)
