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  • 80% Of Trading Is ……

    From newtraderu.com

    80% of trading is behavioral, maybe only 20% is based on the other things that a trader does. Like much of personal finance it is not the math but the behavior that makes all the difference. Most people’s problem with being broke does not lie in their budget it is due to their behavior of spending too much money becasue they lack self control. The inability to say no to yourself in the present is what leads to most of the problems that we encounter at a future time. You can’t out earn stupid and you can’t budget away a lack of self control or work ethic. The same applies to trading. Wanting to be a trader is ... (full story)

yes a lot of it is mental but the bottom line is have to have a static trading plan that can be benchmarked in all environments so you know what your win/loss ratio and risk:reward are. Until you subconsciously know/believe you are going to get desirable results no matter how strong mentally you are you will not be able to pull the trigger day in day out -- unless you are not healthy / self destructive.
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Very wise words indeed!
Quoting Trout
yes a lot of it is mental but the bottom line is have to have a static trading plan that can be benchmarked in all environments so you know what your win/loss ratio and risk:reward are. Until you subconsciously know/believe you are going to get desirable results no matter how strong mentally you are you will not be able to pull the trigger day in day out -- unless you are not healthy / self destructive.
A question: how does one know win/lost ratio? do you have all your setups run through simulations on the large enough data sets to claim having a system with any kind of win/loss ratio? What about average Joe who doesnt know mql language or struggling to tell the difference between stop and limit orders? What if - your system depends on exotic geometry? How does one enter the parameters to test win/loss ratio? If win/loss ratio is the number from your statement - is it indicative? Because any trades between are unconnected probability events...
Ulterior, Everything I do is manual, by hand, and I follow a very simple, static trading plan -- it is the same trading plan regardless of market or time frame. The only inputs are price -- highs and lows and closes. One of our students, Laurent, kept track of all qualified trades for 6-weeks in the early Fall in a handful of markets. In separate studies I kept track of all qualified trades in the yen over a 6 week period in Nov / Dec and the euro for Nov. All three tests were based on the 3 & 15 min charts and all produced nearly identical winning percentages. I also tested the identical method on the 240-min and 60-min charts over a 6-month period and again came up w/ a very similar winning percentage. The market behaves the same in all environments!

The biggest edge I have is having had a brilliant mentor convince me that markets are truly fractal in nature. When you realize what that means it blows your mind. Markets are maddeningly simple systems. The key is to not predict but to just go along with them -- which takes a long time to learn. Money of course complicates things like the devil himself too.

Your questions hint of over-complication.

To quote Richard Dennis, who hatched the Turtles "There is a lot less here than meets the eye".

I wake up everyday and see the same patterns and ratios repeating themselves over and over...
Quoting Trout
Ulterior, Everything I do is manual, by hand, and I follow a very simple, static trading plan -- it is the same trading plan regardless of market or time frame. The only inputs are price -- highs and lows and closes. One of our students, Laurent, kept track of all qualified trades for 6-weeks in the early Fall in a handful of markets. In separate studies I kept track of all qualified trades in the yen over a 6 week period in Nov / Dec and the euro for Nov. All three tests were based on the 3 & 15 min charts and all produced nearly identical winning...
so why not give us one example of a full-proof setup? If its not a secret
Every trader has their own behavior, but in taking different decisions.
Quoting Trout
Ulterior, Everything I do is manual, by hand, and I follow a very simple, static trading plan -- it is the same trading plan regardless of market or time frame. The only inputs are price -- highs and lows and closes. One of our students, Laurent, kept track of all qualified trades for 6-weeks in the early Fall in a handful of markets. In separate studies I kept track of all qualified trades in the yen over a 6 week period in Nov / Dec and the euro for Nov. All three tests were based on the 3 & 15 min charts and all produced nearly identical winning...
Mr Trout you don't need a mentor just one simple book for one greatest person that I deeply respect - George Soros. There you will find what exactly is the nature of the markets. And yes we can't predict the market , no one can , no one can tell the future what will happen tomorrow. That is why we trade probabilities NOT possibilities.
Thank you
"do not predict the market just flow with it" all that is easier said than done. the market swings direction without warning... so, even flowing with it isn't easy one bit...
One needs
1. a good platform
2. a good methodology, price, supply/demand, support resistance. No squiggly lines!
3. The principles of mindfulness,a sound grasp of what your mind is doing to your trading.Discipline patrience etc.
To just trade 1 and 2 without getting number 3 correct is likely to prove very stressful and destroys most accounts over time.
Look up Rande Howell. It has changed, for the better, my trading.
Happy trading
http://screencast.com/t/m3Ks7upFygb

Nice set up here on the S&P, using a bit of volume analysis and candle reading coupled with support and resistance this looks like a good sell trade set up with minimal stop.

Entry was on the break of the doji low and the stop was initially 22 pips target on this trade is taken in three part, exit 1 to cover the stop, exit 2 double that distance, third trade left to run.
Nice and just love the quality of the screenshot must get Jing which I presume this example is from
Thank you
Happy trading
Yes it is its free what are you waiting for good luck.
Quoting Trout
Ulterior, Everything I do is manual, by hand, and I follow a very simple, static trading plan -- it is the same trading plan regardless of market or time frame. The only inputs are price -- highs and lows and closes. One of our students, Laurent, kept track of all qualified trades for 6-weeks in the early Fall in a handful of markets. In separate studies I kept track of all qualified trades in the yen over a 6 week period in Nov / Dec and the euro for Nov. All three tests were based on the 3 & 15 min charts and all produced nearly identical winning...
I can not agree with you more , these words are truly the Holy Grail of Trading.
Master Your Setup, Master Your self. (NQoos)
Trading is 80% behavioral for undisciplined traders.

Trading is 95% to almost 100% psyhcological for Mature traders that are diciplined.

Always stay in control of your emotions and have pre determined trade entries.

Follow and analyise your trade plan and that is how you will succeed.
Agree Gilamonster!

Thank you Bassramy
Agree also Gilamonster.
those are the tough things of trading.
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  • Posted: Jan 14, 2014 5:07pm
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    Category: Educational News
    Comments: 16  /  Views: 4,841