What Do You Consider As The Most Important Aspect Of Trading

[vergis92]

Continue to preach. I find you funny.

I bet you are not even trading real money with the crap you are spouting!

Words are cheap, I can prove those facts based on SP500 daily charts,

I trade , I don't teach,

I only trade futures, not stocks, not options either

So if you are into swing trading the SP500 or Nasdaq
I'd like to know what's the best you can do with or without
adding to 'losing' positions etc,
my best has been 40% on a small account size in 40 calendar days
my monthly consistent average on a big account (big enough to live on)
is 5% a month

so one mans crap is another mans trading style,

I guess is the difference of opinion that makes a stock exchange work too.

what annoys me is hearing about rigid rules that one should never break
in trading...

 

[damianoakley]

In the words of Jack Schwager: "In trading, there is no one true path............."

Maybe we should all have some respect for other people's methods, whether we agree with them or not.



Thanks

Damian

 

[vergis92]

In the words of Jack Schwager: "In trading, there is no one true path............."

Maybe we should all have some respect for other people's methods, whether we agree with them or not.



Thanks

Damian

I agree,
The only reason I post messages here is merely for revealing the real risks
of trading to new traders, speculators. and based on my personal
early mistakes and losses I can warn them against relying too much
on certain advisory services or books that I have used myself,
they will be the judge.

 

[dbphoenix]

I agree,
The only reason I post messages here is merely for revealing the real risks
of trading to new traders, speculators. and based on my personal
early mistakes and losses I can warn them against relying too much
on certain advisory services or books that I have used myself,
they will be the judge.

Vergis, I'm sure you're a real trader and make truckloads of money. But there's an inconsistency between adding to losing positions in the S&P along with 200pt stops and "revealing the real risks of trading to new traders".

Certainly you're entitled to do what you like with regard to managing your positions and your money, but your approach is not what I'd suggest to beginners.

Db

 

[damianoakley]

Adding to losing positions is something that I would most definitely not recommend to a beginner.

If a new trader gets into the habit of averaging out losing trades without realising the risks, then that could be very dangerous.


Thanks

Damian

 

[Windowsill]

Words are cheap, I can prove those facts based on SP500 daily charts,

I trade , I don't teach,

I only trade futures, not stocks, not options either

So if you are into swing trading the SP500 or Nasdaq
I'd like to know what's the best you can do with or without
adding to 'losing' positions etc,
my best has been 40% on a small account size in 40 calendar days
my monthly consistent average on a big account (big enough to live on)
is 5% a month

so one mans crap is another mans trading style,

I guess is the difference of opinion that makes a stock exchange work too.

what annoys me is hearing about rigid rules that one should never break
in trading...

There will come a time, maybe not next week, .........

 

[TraderPattern]

There will come a time, maybe not next week, .........

:cheesy:

 

[vergis92]

Adding to losing positions is something that I would most definitely not recommend to a beginner.

If a new trader gets into the habit of averaging out losing trades without realising the risks, then that could be very dangerous.


Thanks

Damian

Of course it would be catastrophic, new traders tend to think that the market
will turn around and never want to take a loss,

In my style of trading I watch time too, I give the market a maximum of
3 days to move in my favour, if there's turn around indication on the first
or second advesre day i will add to a losing position, if there's no indications
I will tigheten my stops ,

If the market is supposed to rally but instead stays flat for 3 sessions I don't buy in suspision of ay least a couple of down days before anything
new happens

so a losing position more than 3 to 5 sessions old has to be closed ,
But a losing position of equal magnitute (points) which is one or two days old
can be a very different story that I will watch closely

 

[TraderPattern]

Vergis

I suppose I misunderstood you first time around.

The entry methodology that you have just described is a sensible one, and not one that I would define as adding to losers. Had I understood what you meant by adding to losers, I wouldn't have been so hard on you before :cheesy:

What you have described is actually a dealer strategy.

 

[SCFX]

I was hoping for an option for system, while there was a choice for 80% this shows more of a need to be correct than make money. However, if you don't have a profitable system no matter how good u are at the psychological aspects of trading you still won't make money. Also if u have designed your own system which is suitable for your personality then it will make discipline much easier. I am a big believer in fully automated algorithms as this is how i trade. This removes much of the psychological intensity of trading.. but other aspect are always atleast slightly important whether you are an automated trader or not..

oohh i chose 'knowing when to get out when wrong.'

Cheers

Charlie

 

[StupendousTrader]

Discipline isthe most important aspect of trading

All the listed trading requirements are essential to trading but the most important aspect of trading is DISCIPLINE. No matter how great your trading system is, no matter how much money you have and no matter how calm or unemotional you are towards your trading, if you do not have the discipline to follow your rules, execute properly and protect yourself, you will be wiped out from the market.

DISCIPLINE encompasses all the traits you mentioned. You must be very disciplined in self-management, very disciplined in money management, very disciplined in risk management and very disciplined in portfolio management.

DISCIPLINE! DISCIPLINE! DISCIPLINE! DISCIPLINE! DISCIPLINE! DISCIPLINE! DISCIPLINE! Never, ever forget this, if you want to be a consistently successful Trader.

 

[rathcoole_exile]

I'm a bit confused. There are no voting options for:
- playing golf
- spending nights in go-go bars
- riding fast motorbikes
- drinking fine wines, Royal Ascot, Cheltenham, Henley, Glyndebourne, flying at the pointy end
etc etc. These are always uppermost in my mind whenever I enter or exit a trade

 

[Theta2000]

Another way of explaining this is as follows: I should never let the market price take out my initial stop loss price after entering the market - stop loss levels should be placed to cater for the worst case scenarios - which in reality may be of little use since in these type of market movements(worst case scenario) the stop price will more than likely be traded through - fast market.

It follows then, that if my stop level is really of limited use, then I must concentrate on my entries so that when I enter the market the price moves as anticipated in the shortest time possible. If I am wrong, which will be the case for some trades (the number of wrong trades will be dependant on my understanding of the market I am trading and the amount of trading experience I have) then I need to exit as soon as I recognise that the price is not moving as I thought it might.

Fantastic!!

 

[Theta2000]

Although buying pullbacks in a trending stock is legitimate I know it should only be done under very restricted conditions. Otherwise buying stocks which are falling in price is a recipe for long term loss as the trader's/investor's funds get transfered to those of us who trade professionally....
For example look at the tech boom which turned on Mar 12 2000. Some of us shorted from early April, whilst those who kept on buying thinking the move was merely a pullback were severely damaged, many wiped out.
And who were they buying from............?
To even consider buying pullbacks in longs and shorting in down move pullbacks, you need to ascertain that at least the "retracement" has stopped and at least begun to move in its original direction - and that's dangerous enough.
In other words, this boils down to the reality that buying pullbacks with careful money and position management is a strategy, it is most certainly unwise if the "retracement" is the beginning of a trend change.
Richard

...and the secret is let out of the bag!! Knowing the difference between retracement and reversal is the key to WINNING. It is a sure path to profits!!

I'm currently experimenting Option gamma trades with intention to generate 100K with 1K, and with just about 10-12 winning trades, the goal is panning out well - Thanks to the Secret - Retracement or Reversal?

hahahahahaha

 

[DaxDestroyer]

It should be: Manage your losers and get out before it hurts

 

[ZAMES]

Hi Have you posted any information as to ditinguish between retracement and reversal

Thanks

 

[TheBramble]

Yes, these are indeed the most important aspects of trading.

Mods - please delete this along with our lonely Chinese cobbler's cobblers.

Why hasn't he been banned yet?

Cheers

(or as we say here Tsing Tsao)

 

[Pat494]

I guess someone has already prolly thought of it already but I would say the obvious answer is to make as much profit as possible in the shortest time possible

 

[FXfreddie]

I was Surprised to see that Sound Risk & Money Management was not one of the choices. Given that having a solid method of protecting your capital is the survival instinct needed to be able to "stay in it, to win it".

 

[tpearl]

All the listed trading requirements are essential to trading but the most important aspect of trading is DISCIPLINE. No matter how great your trading system is, no matter how much money you have and no matter how calm or unemotional you are towards your trading, if you do not have the discipline to follow your rules, execute properly and protect yourself, you will be wiped out from the market.

DISCIPLINE encompasses all the traits you mentioned. You must be very disciplined in self-management, very disciplined in money management, very disciplined in risk management and very disciplined in portfolio management.

DISCIPLINE! DISCIPLINE! DISCIPLINE! DISCIPLINE! DISCIPLINE! DISCIPLINE! DISCIPLINE! Never, ever forget this, if you want to be a consistently successful Trader.

I have been trading both for Invetsment banks and personally for over 12 years and this is undoubtedly what I consider to be the number 1 key to success. It's easy to learn how charts, fundamentals etc work. But without discipline I don't see how long lady luck can keep you afloat.