What do you wish you had been told?

[robster970]

Araldite - is that the bad ass glue?

The one and only bad ass epoxy resin.

 

[Black Swan]

Pride comes before a fall...already knew it but you should never get too cocky and or arrogant in this game. Be self confident by all means (once you've earned the right), but always tread carefully..

 

[Shakone]

I wish I had been told to spend less time on the entry, and more time on what you do once in the trade.

I also wish I had been told to stick to one strategy more, and work on that, rather than switch from strategy to strategy just because I had a few bad trades.

 

[Gabrial]

I run an automated system and I can assure you that it is NOT an emotionless experience.

Whether you're "discretionary" or "mechanical", you will be beset by the typical human emotions, although the advantage of an algo is that you're less liable to make mistakes.

@ meanreversion

What system do you run and can you give some feedback about it?

 

[forker]

I run an automated system and I can assure you that it is NOT an emotionless experience.

Whether you're "discretionary" or "mechanical", you will be beset by the typical human emotions, although the advantage of an algo is that you're less liable to make mistakes.

I found that emotions dissipated through experience. Bite size risk played a part in that too

 

[kwickwool]

Forget about creating a strategy as it is too stiffling and like driving a car to a destination whilst using reverse gear and the mirror for direction. Use as much information as you can at any given moment to make a dynamic assessment of your trade and you only get that by reading and watching the markets and of course having that "x" fasctor as in the ability to do this.

 

[meanreversion]

Forget about creating a strategy as it is too stiffling and like driving a car to a destination whilst using reverse gear and the mirror for direction. Use as much information as you can at any given moment to make a dynamic assessment of your trade and you only get that by reading and watching the markets and of course having that "x" fasctor as in the ability to do this.

Sorry but this comment is complete poppycock.

If you attempt to trade for an extended period without a strategy, you will come unstuck.

Your analogy is utterly bogus - how is employing a trading strategy like driving a car backwards?

 

[kwickwool]

Quite simple, and I meant trading system not strategy if that changes anything, it will eventually become unstuck and is totally rigid and is like driving a car backwards because you are limiting your view on what you are basing your decisions to trade on?

I am talking about looking at every piece of information that is available to you and making a dynamic risk assessment each time you trade and not sat waiting for a particular system to hit its technical parameters to enter.

The new dynamic trader will trade based on what he see's, feels, and absorbs at that split second to enter into a trade based on so much more information that any system could ever use.

Maybe you are just one of the many sheep of traders, I am talking about the very fast, dynamic, and intra day trading of jumping in and out that is hugely profitable to the people who can master this. Anyone can sit around waiting for signals to hit, thats old school, the game is changing.

I take it everytime you trade out of your system you lose, and that is because you really do not fully understand the markets do you?

 

[meanreversion]

Quite simple, and I meant trading system not strategy if that changes anything, it will eventually become unstuck and is totally rigid and is like driving a car backwards because you are limiting your view on what you are basing your decisions to trade on?

I am talking about looking at every piece of information that is available to you and making a dynamic risk assessment each time you trade and not sat waiting for a particular system to hit its technical parameters to enter.

The new dynamic trader will trade based on what he see's, feels, and absorbs at that split second to enter into a trade based on so much more information that any system could ever use.

Maybe you are just one of the many sheep of traders, I am talking about the very fast, dynamic, and intra day trading of jumping in and out that is hugely profitable to the people who can master this. Anyone can sit around waiting for signals to hit, thats old school, the game is changing.

I take it everytime you trade out of your system you lose, and that is because you really do not fully understand the markets do you?

This is class A gibberish.

Let me get this straight. In order to be a successful trader, you need to have the "X" factor (your words), "absorb what you feel" and make "dynamic risk assessments" in split seconds (presumably your brain is quicker than Goldman Sach's algos?). Thus you must be, what, some kind of new breed of super-trader?

Is this the kind of spiel you tell girls to impress them? You need to be honest with yourself and realise you are talking out of your behind.

 

[robster970]

The human brain is considerably more parallel in processing than any series of machines employed by any HF or IB. In terms of information processing you know humans still outclass any computer on this planet. That aside, the phrase 'Garbage In, Garbage Out' applies equally to humans as it does machines and I recently concluded that the data you require to trade successfully is pitifully small.

 

[kwickwool]

Yes my brain is a million times better than any computer and if you understood a little about biochemistry you would understand that and however dull yours sounds yours is probably as well.

Each time you make a decision it is based on not just a group of technicial indicators, my nan could trade like that and quite frankly you talk about systems like GS algo's, how much do you think thast makes u idiot?

 

[meanreversion]

Yes my brain is a million times better than any computer and if you understood a little about biochemistry you would understand that and however dull yours sounds yours is probably as well.

Each time you make a decision it is based on not just a group of technicial indicators, my nan could trade like that and quite frankly you talk about systems like GS algo's, how much do you think thast makes u idiot?

Oh dear, you're so clueless it's painful.

I can't be bothered to continue this discussion much further, but in reference to an earlier post of yours, the style of trading you describe sounds to me like scalping.. making decisions in split seconds, jumping in and out, etc.

If scalping is in fact the only form of trading, then I will agree, I am not going to compete. I wish you every success in going head to head with all the very successful high frequency funds out there.

 

[kwickwool]

Okay, will finish the discussion that you so rudely started with your arrogant reply to my initial post here, yes you need the "x" factor to trade the way I do, not sure there are many people who could do it and call it the "x"factor or whatever but it is something special to trade this way and I am sure you as a trader can appreciate anyone who can even though it hurts you to say.

Secondly not the slightest bit interested in going head to head with any high frequency fund out there, there is plenty to go around for all concerned here and operating soley and independantly am never going to impact on the big boys and not interested in doing that. My cash, my profit and no one in the middle or dictating.

 

[HowardCohodas]

Forget about creating a strategy as it is too stiffling and like driving a car to a destination whilst using reverse gear and the mirror for direction. Use as much information as you can at any given moment to make a dynamic assessment of your trade and you only get that by reading and watching the markets and of course having that "x" fasctor as in the ability to do this.

Were I to put myself in the mindset of a new trader, how would I practically employ your input? What steps would I take to employ your insight.

 

[DionysusToast]

Personally, the thing I wish I'd been told, that would have saved me a lot of work:

"Trading is not a problem with a mathematical solution"

 

[HowardCohodas]

Personally, the thing I wish I'd been told, that would have saved me a lot of work:

"Trading is not a problem with a mathematical solution"

Hard to accept when math is your long suit. Don't know if I would have had the maturity to take your advice when I started. Much humble pie later, I know you are exactly right.

 

[MarketMoverTrader]

I love that this thread is growing so fast, but maybe a few folks should read my first post.

It's a pity that new traders, that may want to use this thread to get some solid advice from seasoned traders, will have to wade through all the posts with back-and-forth bickering.

But thanks for the contributuons so far - some good stuff to think about.

Here's another one of mine: Don't start live trading without at very least reading the work of Mark Douglas - so important to the psychology of it all, regardless of what you trade.

 

[meanreversion]

Here's another one of mine: Don't start live trading without at very least reading the work of Mark Douglas - so important to the psychology of it all, regardless of what you trade.

I'd definitely put "Trading in the zone" on my list of must-read books.

 

[kwickwool]

Okay, and will apologise for my arrogance earlier as have the flu and been in bed today not trading and found myself a bit wound up.

To a new trader I would say this to them, dont read any books, any information on the markets apart from the very basic but look, watch and study commodities, major FOREX PAIRS and the FTSE and DOW movement all together and see how they work, react at any given time, to whatever news, what is driving what etc at any given moment and taking notes and keeping a daily log, with comments and observations. Do this to give yourself a possible view and perspective on the markets that a total newbie would see that is totally unbiased by other input, try and build your own platofrm from software that you want to see on your computer screen based on what you feel is important?

I would say do this for at least a few months minimum, 6 months maybe, then read as much as you can on this(BBMAX trading system great start) and any other forum to build and further improve what you feel will add to the way you would like to trade but only to further add to your initial perspective and not as an overall control to the way you trade. You should find that when you start reading that some things you discovered by yourself are actually in use and good, and I hate to use to word systems, but ways to further improve the statistical chance of predicting the market movement.

You may get to a stage where from all this hard work you have built up a database on information in your brain that allows you at any given moment to jump in based on what could be so many different parameters and factors to any market at any given time and not just hard fundamentals? That is why I sate that rigid systems do not account for all of this and think that this is the best challenge to trade in this environment and perspective.

This way is not for everyone, you have to be a bit different I guess, and there are no short cuts here, nothing but constant hard graft and analysis of the markets over years may get you to where you want to be, this is one of the hardest ways to trade, and does require the hardest of effort but the rewards are there. This is also obviously always a work in progress effort going on each day so that you are still continually adapting to whatever the market decides to do in the best dynamic way possible. Most traders want that system that brings overnight success with little work, and do not mean to knock those who do. For me this was the only way I ever wanted to trade and that was not even from advice from anywhere, it is what I felt would be best suited for me, it was for me the most logical progression to trading and would never have done it any other way?

That said, this is so not the norm way of trading and maybe a newbie or many should go down this route but each to their own, we all have to be intellligent enough to stand on our own 2 feet and make decisions and quite frankly never take advice from anyone just absorb the information and take out of it what you feel you need to? A little, lots, bugger all?

This maybe crap reading to most but that would be my advice to any beginner? Would like to add that hardly anyone would do this or indeed does this, maybe I am a bit of a lone voice here so most can ignore this post, and expect a few of the usual arrogant replies.This worked for me and was the only way that I ever wanted to trade and felt was the best way to go.

If you like the above is my system but hate that word, but not one that you can punch in a few indicators or put in writing but you can only do with the right effort and outlook, no short cuts here.

 

[meanreversion]

Okay, and will apologise for my arrogance earlier as have the flu and been in bed today not trading and found myself a bit wound up.

To a new trader I would say this to them, dont read any books, any information on the markets apart from the very basic but look, watch and study commodities, major FOREX PAIRS and the FTSE ...

Kwick, I'm really not trying to pick a fight here (honest) but are you serious in advising people NOT to read trading books?

"Market Wizards", for example, is a fascinating insight into several very successful traders, their life stories, their methods, their advice and so on.

"Trade your way to financial freedom" is an excellent book, irrespective of ability, and amongst other things it outlines different styles of trading.

If you think about it, what you're really saying is "don't read books, but make sure to take my advice on trading" .... this is unbelievably arrogant and actually quite comical, do you see that?