Michael8667
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I'm rather new to these forums and have been trading for some time now and have developed numerous theory's on financial markets and economics.
My pinnacle of thinking provided the following theory: The Theory of Participation of which coincidently states;
“Market movement is a result of collective individual participant’s actions. Thus meaning market movement can be defined as a total random event, as all individual participants actions are unknown.”
Basically assuming that any trader is simply guessing, or as I like to say reducing the risk of loosing. This is where most traders fail, they chase the gains or attempt to develop systems that are flawed in the sense that you can't predict the markets.
You can develop systems or look back at historical data to suggest how we as participants react to news or data however this again is flawed. Lehaman Brothers never went bankrupt in the past, the .com bubble didn't occur in the past and economic data is different every time it's released in the sense that the surrounding sentiment is never the same.
The most successful traders in my eyes are those who set out with one goal: Reduce risk. In reducing risk, you're reducing the risk of loosing. The less risk involved the more likely you are to succeed. So start with thinking about risk, finish thinking of risk and then throughout think of risk.
My systems are all automated and producing returns that give a comfortable life and in time I perhaps will become a money manager and be part of the 15% club. Afterall I'm only 19.
My pinnacle of thinking provided the following theory: The Theory of Participation of which coincidently states;
“Market movement is a result of collective individual participant’s actions. Thus meaning market movement can be defined as a total random event, as all individual participants actions are unknown.”
Basically assuming that any trader is simply guessing, or as I like to say reducing the risk of loosing. This is where most traders fail, they chase the gains or attempt to develop systems that are flawed in the sense that you can't predict the markets.
You can develop systems or look back at historical data to suggest how we as participants react to news or data however this again is flawed. Lehaman Brothers never went bankrupt in the past, the .com bubble didn't occur in the past and economic data is different every time it's released in the sense that the surrounding sentiment is never the same.
The most successful traders in my eyes are those who set out with one goal: Reduce risk. In reducing risk, you're reducing the risk of loosing. The less risk involved the more likely you are to succeed. So start with thinking about risk, finish thinking of risk and then throughout think of risk.
My systems are all automated and producing returns that give a comfortable life and in time I perhaps will become a money manager and be part of the 15% club. Afterall I'm only 19.
