My best advice to traders wanting to get better at discretionary trading

SybilCut

Junior member
36 9
Alright, so you've pissed about , read the advantages of swing trading versus day trading, spreadbetting versus real market, calculated how much you would make if you made X$ per. But you're probably lacking any real progress, energy or momentum when it comes to your trading eh?

The best way to learn trading discretionary is firstly to grab an approach, and then never listen to anyone else's opinion on the market, even those who trade the same approach. It could be PA, MACD divergence, stochs, volume, whatever.

I see traders too often wondering what others have came up with in regards to their approach; they will flock to the 'authorities' on the method, and try and somehow be that trader. This will never work. Never. Trading is just too damn personal and it really is a journey which involves building a ****ing complex mental map with which you read the market.

Simply reading 'do this when X' will never embrace this fact, because there will always be exceptions to the rule, times when the black and white 'rules' you thought would guide you so peacefully to financial freedom, don't work. This is because markets and successful traders' mental maps are grey.

Now that you know it's up to YOU only , my last bit of advice is fairly simple: trade take records, and BACKTEST.

You can backtest with discretionary trading, it's just not for the purpose of coming up with % win or loss. This is how I made it into being a good trader. Pick 3 or 4 years, or a huge sample set that's easily divisible....and then literally, scroll bar by far (going left to right btw) and just be honest with yourself; never give yourself the benefit of the doubt when you see a trade you're not sure about, this ensures you are realistic.

Keep on doing these backtests after every few months to 'refresh' and again be honest with yourself. You will be improving by starting to feel comfortable with whatever the backtests throw at you,and gain somewhat artificial experience of trading. Also, include the trades you have taken into the backtest and constantly re-assess what you 'would have done'.

This way you are thrown into situation after situation; you are forced to mould your approach to fit into the context of the market, and you will slowly burn patterns (which are grey in nature) into your mental map of trading.

This is painful, this is extremely difficult, this takes time and you will end up throwing 'brilliant' ideas you came up with away, slowly stripping away ****ty ideas and gaining new ones. You will end up having to admit that you wouldn't have taken that great trade, that you would've taken that ****ty one. This is learning.


This was my approach to building a mental map of the markets and it worked (after 1.5 years), there are other ways of course which don't look at historical data, I wish you luck, this is my giving to the trading community, however it might be pissed on.

(y)
 

VielGeld

Experienced member
1,421 179
I agree with the above, though I'd like to simplify it:

- Your method will ultimately be personal. You must be willing to put in the work necessary to develop it as well.

- Screentime is King.

- Experience is God.

- Always review your performance and how price/participants behaved in the given situation.

These are the essentials. The rest is, imo, personal flavour.
 

NVP

Legendary member
36,906 1,905
not bad at all S...not bad at all.........hope newbies read this post ;)

for me the toughest is tearing up many many ideas after months (years) of research and good potential results.......and then a few months later picking them out of the bin and trying again with new slants on them....

thats probably my advice ...when experimenting....never disregard totally any ideas you have ...its amazing how they can be useful in the future

I look at systems I devised say 4 years ago and now think....hmmm thats got potential....

why ?........because the idea may be a good one .....but you were not experienced enough at the time to realise it :smart:


N
 
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SybilCut

Junior member
36 9
not bad at all S...not bad at all.........hope newbies read this post ;)

for me the toughest is tearing up many many ideas after months (years) of research and good potential results.......and then a few months later picking them out of the bin and trying again with new slants on them....

thats probably my advice ...when experimenting....never disregard totally any ideas you have ...its amazing how they can be useful in the future

I look at systems I devised say 4 years ago and now think....hmmm thats got potential....

why ?........because the idea may be a good one .....but you were not experienced enough at the time to realise it :smart:


N
Yeh that's true. I think when you start you jump to conclusions quickly, and kind of make a list of rules to rote learn to trade the markets by. The rules may actually have historical backing, but over time you slowly 'understand' the rules .

It's like studying A level maths, you simply 'accept' something about calculus or whatever, but only upon years more experience, say going to uni , so you really understand why that rule makes sense and the context of it all.
 

Bobby Dazzler

Newbie
2 1
I did this a few years ago, Dropped all the B****cks I'd been taught, stripped it back and back tested for hours and hours.

Maybe it was coincidence, but I started to be successful.

Great article ! ! !
 

NVP

Legendary member
36,906 1,905
I did this a few years ago, Dropped all the B****cks I'd been taught, stripped it back and back tested for hours and hours.

Maybe it was coincidence, but I started to be successful.

Great article ! ! !
you have to walk your own path ....and that can deffinitely mean revisiting many things again with the more experienced eyes you gain over time ......things will look different and more idea and opportunities will reveal themselves to you the second / third time around

i do this all the time ....all the time

N
 

Malordana

Junior member
36 1
I agree that any topic needs to be dealt with by myself. And if something is right for your trading, it doesn't mean that another trader can free use this strategy as well. But sometimes you really find something interesting for yourself or notice a problem that has been haunting you for a long time. I would say that it is our experience that we share that can lead others to find their difficulties and vice versa. It's also very interesting to read about how trading is treated. Who is at the initial training stage, someone is already completely immersed in the topic, someone has already become a really confident master of his business. And it can sometimes be very useful to talk aloud like that.
 

fibo_trader

Veteren member
3,750 73
Alright, so you've pissed about , read the advantages of swing trading versus day trading, spreadbetting versus real market, calculated how much you would make if you made X$ per. But you're probably lacking any real progress, energy or momentum when it comes to your trading eh?

The best way to learn trading discretionary is firstly to grab an approach, and then never listen to anyone else's opinion on the market, even those who trade the same approach. It could be PA, MACD divergence, stochs, volume, whatever.

I see traders too often wondering what others have came up with in regards to their approach; they will flock to the 'authorities' on the method, and try and somehow be that trader. This will never work. Never. Trading is just too damn personal and it really is a journey which involves building a ****ing complex mental map with which you read the market.

Simply reading 'do this when X' will never embrace this fact, because there will always be exceptions to the rule, times when the black and white 'rules' you thought would guide you so peacefully to financial freedom, don't work. This is because markets and successful traders' mental maps are grey.

Now that you know it's up to YOU only , my last bit of advice is fairly simple: trade take records, and BACKTEST.

You can backtest with discretionary trading, it's just not for the purpose of coming up with % win or loss. This is how I made it into being a good trader. Pick 3 or 4 years, or a huge sample set that's easily divisible....and then literally, scroll bar by far (going left to right btw) and just be honest with yourself; never give yourself the benefit of the doubt when you see a trade you're not sure about, this ensures you are realistic.

Keep on doing these backtests after every few months to 'refresh' and again be honest with yourself. You will be improving by starting to feel comfortable with whatever the backtests throw at you,and gain somewhat artificial experience of trading. Also, include the trades you have taken into the backtest and constantly re-assess what you 'would have done'.

This way you are thrown into situation after situation; you are forced to mould your approach to fit into the context of the market, and you will slowly burn patterns (which are grey in nature) into your mental map of trading.

This is painful, this is extremely difficult, this takes time and you will end up throwing 'brilliant' ideas you came up with away, slowly stripping away ****ty ideas and gaining new ones. You will end up having to admit that you wouldn't have taken that great trade, that you would've taken that ****ty one. This is learning.


This was my approach to building a mental map of the markets and it worked (after 1.5 years), there are other ways of course which don't look at historical data, I wish you luck, this is my giving to the trading community, however it might be pissed on.

(y)


Good contribution. Added to the subject titled, "there are many roads that lead to Rome and more will follow as sure as night follows day"
 

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