Recently I happened to read an advice given by a veteran
trader to his deciples. The essence was, if we select and follow a study with discipline
and patience Market will eventually reward our loyalty.
Yes, I agree. There is some truth in it. Many traders waste
a lot of time and energy searching for the Holy Grail. They flirt from system
to systems and methods to methods. It makes sense to stick to a method and
become an expert trading it. Winners never quit. Wise men stick to their
methods and get rewarded. It is conventional wisdom.
But there is a problem, Most of the traders are not lucky
enough to find a profitable method from day one of their trading career. Many
traders end up selecting a method without a true edge or something not suitable
for their personality and stick with it for years without any progress.
Finding a method with an enduring edge is a trial and error
process. We traders must be good at quitting. We must quickly abandon .and quit
a method which is not providing a true edge. Simply sticking to some method
will not make you profitable. Ensure there is an enduring edge.
Edge is simply the ability of your study or method to repeatedly identify
actionable price levels from where you can expect a very high probability non
random directional price move. Test your chosen study and ensure there is an
edge in it. Throw it out if not. Believe me,. Most of the conventional studies
have no edge. Majority of the traders adopt these studies and you know very
well what happen to them.
Cult Leaders may reward your loyalty. Markets will never
Cult Leaders may reward your loyalty. Markets will never
ST Sir,
ReplyDeleteIs this article is pointed to...
SAR system trader??? JN
Ramesh
ReplyDeleteI am not pointing to any particular individual, blog or forum, There are many.
Just wanted to invite your attention to
1.Dangers of sticking to a method without an edge in the name of patience and discipline
2.Blindly believing something or somebody without verifying the facts on your own.
3.Need to avoid cults if you really want to grow and stand up own your own
ST