Let's cut the BS, no-one here has a magic system

[meanreversion]

There are several threads going on right now on how to make x pct over y time-frame, along with comments such as "you must make this or that, I don't get out of bed for less than z" etc.

We are retail punters on this website. We have NO informational advantage. None. Unless you know someone who works at a bank who is prepared to divulge an imminent transaction (why on earth would they do this ..), your edge is limited.

The advantages you have are

1. You don't need to trade if you don't want to.
2. Spreads are really very tight these days, and there are no shortage of competing brokers providing nice, friendly user interfaces.
3. Charting/backtesting software is excellent and very cheap.

Ok, have I missed anything?

Now, however you trade, there will be times when the market is favourable, and times when it is not. This is why money management is key, because it enables you to get through the tough patches. This in turn aids the pyschological aspect of trading, namely sticking to your positive expectancy trading strategy.

There's nothing else to say, is there?

Discuss.

 

[trendie]

Whilst essentially true, you may be missing the point.

The newbies are most likely to get burned, since they expect a complete system on the proverbial silver platter. Even then, they would lose their nerve after 3-4 consec losses.

The longer serving members are most probably trading their own developed systems, even if those systems are variations of freely available ones, or bought off-the-shelf.

The more experienced are not looking to adopt wholesale someone elses system, but looking for extras, or add-ons, or useful rules to add to their own rules.

Using 4xpipcounters thread as an example, whilst I would want to ignore the idea of adding to a losing trade, I may learn something useful about his method of analysis for entries. I could choose to adapt it to use stop-losses, and backtest it. And create a variation that suits me.

Any system that makes consistent returns, maximises returns in its preferred market state, and minimises losses in non-optimal market states, is, in my opinion, magic!

 

[Black Swan]

BOO!! 'kin lulz killer...:rambo:

 

[shadowninja]

Yep!

 

[meanreversion]

Black Swan, you're definitely becoming more voyeuristic

 

[pboyles]

You mean the 'Lazy Rich Trader' system we heard about just the other day doesn't work? Next thing you'll be telling us that you can't learn to be a forex expert after one of those weekend courses.

 

[trendie]

BOO!! 'kin lulz killer...:rambo:

now I know why I don't get invited to parties anymore.

 

[wackypete2]

i have a magic system. It makes my profits disappear...poof... {smoke effect}

Peter

 

[meanreversion]

Michael Barrymore managed to lose most of his money as well ... poof ...

 

[wackypete2]

Now, however you trade, there will be times when the market is favourable, and times when it is not. This is why money management is key, because it enables you to get through the tough patches. This in turn aids the pyschological aspect of trading, namely sticking to your positive expectancy trading strategy.

Absolutely correct. Aside from money management, knowing how other participants in your market act and react is a tool not taught but must be learned. It worth 100x it's weight in gold.

Peter

 

[the hare]

You are wrong, but I can assure you that those of us who could help, wont.

 

[wallstreetwarrior87]

There are several threads going on right now on how to make x pct over y time-frame, along with comments such as "you must make this or that, I don't get out of bed for less than z" etc.

We are retail punters on this website. We have NO informational advantage. None. Unless you know someone who works at a bank who is prepared to divulge an imminent transaction (why on earth would they do this ..), your edge is limited.


Discuss.

Meanreversion, just because you cant see the information infront of you does NOT mean it is not there.

I have pointed these aspects out numerous times on different threads, but to no avail. No one has picked up anything. Shame, cant say I havent tried.

Your edge is not limitied; infact you are so far wrong it is scary. Big institutions, hedge funds etc, they are the ones who are limited. In what sense you may ask, well work that out for yourself.

Im not apologising for being abrupt, but I have never seen so much negativity, or resentment as there has been on recent threads for a long time.

 

[meanreversion]

I'm sorry you feel that way. My original post was not negative, as it outlined three distinct advantages that we DO have these days. In fact, not having to trade unless you want to is the big advantage we have over institutions (although dare I say, few retail punters use it!).

The idea is to bring a sense of perspective and sanity to some of the more outlandish claims that have recently surfaced on t2w, including one chap who claims that trading futures and doubling your money is a piece of cake (despite only having been trading for six months). I could take all my money to the casino round the corner and bet on red, and double my money in ten minutes, but it's not an advisable strategy.

With regards information, it's highly unlikely that the cornerstone of our edge is more timely access to data than other market participants.

Lighten up!

 

[Hilarymannah]

wallstreetwarrior is bang on the money !!

 

[wackypete2]

With regards information, it's highly unlikely that the cornerstone of our edge is more timely access to data than other market participants.

or more thorough data.
farmers and grain elevators know more than the retail trader will ever know about their crop harvest.

Peter

 

[wallstreetwarrior87]

I dont think its a case of lightening up, I just thought that maybe people would investigate other areas that are far more beneficial to trading success that what is repeated here time and time again.

No one complains if they acheive their goals.

 

[BizTechTrader]

There is no magic system or holy grail. In fact if there were it wouldn't last long since others would discover it and thus decrease its potential. Many great traders have said that imperfect systems work best for this reason, and they stay away from perfection at all costs!

 

[wallstreetwarrior87]

Now, however you trade, there will be times when the market is favourable, and times when it is not. This is why money management is key, because it enables you to get through the tough patches. This in turn aids the pyschological aspect of trading, namely sticking to your positive expectancy trading strategy.

There's nothing else to say, is there?

Discuss.

The 2nd part:

Theres a lot to say actually;

This is not aimed at you directly, it is just that you post comments (that are common with others) that are incorrect and is detrimental to new aspiring traders.

You do NOT under any circumstances trade when the odds are not favorable, or as you have put it, when times are not favorable!!!!

This has nothing to do with money management, this is gambling, and this is why you struggle to understand traders who can win with a high strike rate, and favorable reward versus risk.

Information is gained by understanding orderflow, nothing to do with TA, DOM, time and T&S. It is there for all to see.

This is the reason why forums can be dangerous, because incorrect assumptions are made, and then they are posted on boards with no one to govern them because there is no blue print available.

Traders whom have been in the game for long enough will know where im coming from.

Good luck to everyone:clover:

 

[meanreversion]

Fair enough, I'm always open to learning new things, maybe you can explain to us a little more on this thread about trading using orderflow, or is there another thread already dedicated to this?

(what does DOM stand for?)

 

[wallstreetwarrior87]

DOM = Depth of Market