The Real Reason Why Most Traders Fail:

[mrsoul]

Provided you have a system that works perfectly and consistently ALL THE TIME. But most agree there is no such thing. There are too many variables. Again, take the car example. Why don't we have auto-pilot cars? Do you drive the same way down the same road on a nice summer day, during a foul thunder storm and in icy, snowy conditions late at night? Is there an auto-pilot vehicle that could? What/who is responsibe for the safe conclusion of the journey each time? You, the driver (provided you approach each condition with the same discipline and consistency - i.e. not being overtired, drunk, blindfolded, etc). That said, again, who is responsible for any mistakes? The car?

But that's just my opinion. You started the thread. What is your answer?

I really believe that if you have something that really works, your psychology will be fine enough not to screw it up.

Being disciplined to follow the rules of a winning system is the easy part.
The hardest part of trading is finding a system that works.

Finding a profitable system is just like panning for gold.
And this is the game.

 

[Neoripley]

I really believe that if you have something that really works, your psychology will be fine enough not to screw it up.

Being disciplined to follow the rules of a winning system is the easy part.
The hardest part of trading is finding a system that works.

Finding a profitable system is just like panning for gold.
And this is the game.

I wish someone else would jump in here .
My opinion? I don't agree it's like panning for gold because with the gold you're not sure if it's even there whereas with the markets you KNOW there's an opportunity everyday! That's what's so frustating .
Don't you believe you can design your own winning system? Take the car analogy (yet again - and no, I'm not a mechanic :cheesy
If you had all the parts and tools at your disposal to construct a vehicle (as you do with a trading system) the only thing standing in your way is the effort and inclination (that's why we buy cars ready-built). But, even if your car was just a basic box on wheels with the very basic requirements of an acceleration, steering and braking system, there's no reason it won't get you from A to B just as a custom built state-of-the-art *Lamborghini will. Hell, even a bicycle will and that's a very simple system - just requires a lot more real time effort! (as opposed to preparatory effort).
What I'm trying to say is that I don't think a system is greater than it's trader - you are the master of your system/trading account just as you are the master/driver of your vehicle. But you can never be a master of the markets. Your results can be good or bad, depending on you, the trader and how well you drive/trade.
On the other hand even if you don't build you own system (set of rules) and choose to buy one, you still have to know how to drive it properly. And, as with driving, you learn the basic/advanced skills but you only become proficient with practise and experience. Having said that there are still the obvious risks and there are no guarantees - even more reason not to drive with your eyes shut!

*includes a neuro-network auto-pilot as a standard feature

 

[cuotes]

I really believe that if you have something that really works, your psychology will be fine enough not to screw it up.

That's true provide it works 100% of the times, as Neoripley says.

IMHO, I view the whole thing as an equation with two factors. Technical and psychological. If technical factor contribute with a 100%, then the other factor can add 0% and everything is ok.

As soon as technical factor can't assure a 100% of effectiveness, you need to balance the equation.

Otherwise, why not everybody just follow Warren Buffet's way of trading? It is obvious that works pretty well.

Simply because not everybody can't stand it.

ps: I like the car's analogy.
ps2: I like this thread

 

[GCC]

Only a very small percentage of traders are psychological basket-cases.
A trader becomes a psychological basket-case when he trades a methodology that doesn't work.

I believe in the opposite: A methodology becomes a basket-case when a loser trades it.