Group trading?

Hello,

I'm new in the forum though have been trading on and off for the last seven years. A friend of mine who is a software engineer has carried out a mathematical analysis on major forex pairs on various time frames from thirty mins to daily charts. Her findings showed over 50% of the standard candlestick signal which professional traders (we both had one to one coaching with a professional trader) use to initiate trades goes against resulting losses. If the risk/reward ratio is good, then this still can be profitable. The difficulty is to accept losses and stick to the principles. Would that help if people trade in groups rather than individually? Any thoughts anyone?

Naushad

In my opinion it does not mather if people trade in groups rather than individually, the problem is elsewhere. It is difficult to accept losses and stick to the principles because you did not develop that method and "maybe" do not know the method expectancy. If you develop your own method based on an edge and test it well you will know the statistical facts of your idea. Based on this, it will be easier for you to to accept losses and stick to the principles.

Every person has their own levels of self awareness, differing levels of discipline, emotional control, particular personalities and will react in very unique ways when facing different life situations, especially when there is real money involved. This is the main reason why it is futile “in most cases” to copy a trading method to trade it by yourself. Chances are you might not have the personality traits of the method creator and will not rapport to take the trades when the signals are given or to manage the trade by the method rules.

A trading method is psychologically liked to the person who made it, if you are not compatible with his (her) personality attributes, it will be a very difficult trading method to execute turning this into costly mistakes.

Hottrade said:

Hello,

I'm new in the forum though have been trading on and off for the last seven years. A friend of mine who is a software engineer has carried out a mathematical analysis on major forex pairs on various time frames from thirty mins to daily charts. Her findings showed over 50% of the standard candlestick signal which professional traders (we both had one to one coaching with a professional trader) use to initiate trades goes against resulting losses. If the risk/reward ratio is good, then this still can be profitable. The difficulty is to accept losses and stick to the principles. Would that help if people trade in groups rather than individually? Any thoughts anyone?

Naushad

Click to expand...