Installing New Beliefs

[thepoliteone]

Charlton,

As one reading this thread with a bit of confusion, thank you for a very clear and understandable post, that allows me to go away and consider many things.

-TPO.

 

[rfk_from_za]

Charlton,

Let me start by saying thank you for posting a well thought out and referenced post.

In terms of the initial posts about emotions, I accept that I contradicted myself, but I feel that was down to the fact down to me not understanding that we don't have to trade in a manner that removes all emotion, but rather in a state that is free from the effects of emotion.

In terms of being defensive, when asked if I had back-tested the system, I said yes I used Prorealtime to test the system on historical data. I was then asked if I had paper-traded the system, I responded yes I traded it using a simulated account and made a 2% return on the capital I had in the system. I am not 100% sure what the difference between forward-testing and trading it using a simulator is. So if dbphoenix could clarify that for me I would appreciate it.

The response to this was that dbphoenix felt I had not tested my system enough. Ok thats fair enough, I will carry on testing it until I am completely consistent and profitable with it. Since you all felt that if I am still second guessing it enough I obviously haven't tested it enough. Agreed, I see your point and will test my system further.

I have read "Journey from the Basement". This is provided for background information, not to be defensive.

As for asking for examples and peoples experiences - fair point, I can understand how this looks like I am asking for a quick fix, but this is simply not the reason I am asking for them. I was merely looking for some sort of control group for the experiments I am performing, however I guess the proof of a technique working would be my equity curve rising. My experience of insights is that they are made by observation, gathering information as well as interviewing people who have been there before. Getting someone else's view or experience can often aid you in looking at a problem from another perspective. Is this not part of being open, listening to others?

The reason that I am asking for techniques is that I don't have a major in psychology, I have read some stuff on the trade2win knowledge bases regarding things like brief therapy, however I was looking for examples of how people applied these to their trading just to gain peoples views on it. I know my mileage may vary, but by trying techniques the majority of people have found useful - probability suggests that those techniques will work for me too.

I guess I was also looking for some directions to explore to determine what works for me. As far as I am concerned this is all part of putting in the hard work. Lawyers and doctors are given case studies that help describe a particular topic or further explore a particular concept, surely this should apply to trading concepts and trading psychology. Our greatest scientists started by looking at other peoples experiences and deductions and then either explored them further (making further deductions and taking the concept to new levels) or proved them wrong. Obviously this would be difficult for traders since each moment is unique and each traders response is unique. However, I do feel that if enough of us shared our experiences and techniques we would all find some techniques or concepts or views that would further our trading. This is why I was asking for them. Not to simply blindly copy them and in the hope they would lead to untold wealth, but to test them & integrate parts that worked for me. As you yourself have mentioned we should be continually learning in order to improve our trading.

So in response to the questions you raised:

1. Have I truly accepted that a lot of hard work is going to be required to become consistently profitable - Yes absolutely, I will continue to test my system until I trust myself to execute it precisely.
2. Am I being Open - well I am trying and your post has forced me to rethink some of my techniques and the reasons I am asking for examples and experiences. Thank you
3. Am I looking for a Quick Fix - Absolutely not, I merely ask for examples and experiences to further my trading knowledge and see how others have succeeded or failed in their endeavours.
4. Am I being Defensive - I don't think so since I believe I have agreed with most of the points that you have put across, and merely argued my reasons for asking for examples which I guess could be considered defensive. However I would interpret this in context; we are merely debating a topic and none of what is said has been personal in any way.

I look forward to everyones responses

 

[CYOF]

Hi rfk,

Are you still around - and how have you done since the last post on 23-04-2006?

IMHO, the majority of us traders tend to over complicate things - which seems to be a phase that we all go through - including me.

For me, the most important belief is in myself and my own abilities. I will look at what other traders are doing and pick out any relevant details in relation to the trading approach (or approaches) that I have decided to use. I will then apply this new knowledge where applicable, and modify to suit my own personal style - if required

I forget about all the hype - and evaluate information for what it is worth - if I can use some of it I will. I question everything I read and see, and always tell myself that there is no such thing as an elite group of traders that I must strive to be like.

All I need to do for to become a successful trader is - BLASH>buy low and sell high, or SHABL>sell high and buy low. Once I have mastered this buying and selling - the amount of money that I make will then be dependant on a lot of factors - all of which I must fully understand and be aware of - these factors will be different for each trader - but the ability to BLASH and SHABL is a pre requisite to my success.

Regards,