The complete idiot's 2 minute guide to trading

[arabianights]

If you believe in trends then money management is all you need to trade. Cut losses, run winners.

If you don't believe in trends but believe in mean reversion then all you need to trade is to average

If you don't believe in trends, don't believe in mean reversion, but believe in random walks then all you need to trade is to make the market, i.e. sit on bids and offers.

My personal belief is that all markets are in one of the above modes and a trader can be successful just by identifying which one it is currently in.

Naturally this doesn't apply to anything involving options or exotics...

 

[trendie]

47 trading books for sale, and 3 lots of various trading DVDs.

Books include: Van Tharp, Curtis Faith, Douglas, Farley and JJ Murphy.

Sale enforced due to arabianights illuminating deconstruction of principles of trading.


(how can I get back all the time I squandered reading T2W and all its myriad threads??)

I shall sleep a deep and restful sleep tonight.

 

[foredog]

Ooooh trading books, the holy grail must be in there...send 'em this way!!!!!!

 

[MrGecko]

One more...

Nice post Arabian. I will, if I may, add one more point which I feel completes the "all there is to know about trading" thread successfully:

The ONLY difference between winners and losers is their attitude.

 

[fibonelli]

One more!

Re: Support and Resistance

Generally speaking:

Don't sell the floor

Don't buy the ceiling

 

[hwsteele]

If you believe in trends then money management is all you need to trade. Cut losses, run winners.

If you don't believe in trends but believe in mean reversion then all you need to trade is to average

If you don't believe in trends, don't believe in mean reversion, but believe in random walks then all you need to trade is to make the market, i.e. sit on bids and offers.

My personal belief is that all markets are in one of the above modes and a trader can be successful just by identifying which one it is currently in.

Naturally this doesn't apply to anything involving options or exotics...

No wonder it has taken me so long to be successful at trading...it took me OVER THREE minutes to read your whole post!
Would you be so kind as to tell me where I may procure a copy of the Cliff's notes on all of the above?

P.S. No matter how simply it is laid out someone:whistling will still want a short cut.

 

[trendie]

Whether you trade a trend or a range, identify the entry point where the cost of being wrong is cheapest.

 

[teojh]

Whether you trade a trend or a range, identify the entry point where the cost of being wrong is cheapest.

this means all my entries would be at where i would place a stop.