Hello all,
I've read the excellent article "Trading As A Business" by Charlie Wright (got it from the sticky-thread "Information for Beginners" in this forum. Link: http://www.elitetrader.com/tr).
Wright describes the path to being a successful trader in 4 phases:
1 - The Discretionary Trader: "A discretionary trader uses a combination of intuition, advice and non-quantifiable data to determine when to enter and exit the market".
2 - The Technical Trader: "A technical trader uses technical indicators, hotlines, newsletters and perhaps some personally defined objective rules to enter and exit the market."
3 - The Strategy Trader: "A strategy trader trades a strategy method of trading that uses objective entry and exit criteria that have been validated by historical testing on quantifiable data."
4 - The Complete Strategy Trader: "
The complete strategy trader has learned to use advanced cash management principles, trades multiple markets, and may trade multiple strategies in each market."
To anyone who have not read this article I'd mention that the author teaches you to use strict rules for entering and exiting a trade. there is no place for discretion of any kind, which makes the system automatic.
Now to my questions:
------------------------------
1 - Do you agree with the 4 phases? did you experience those phases on your own ? Personally, when I read I thought he was talking about me.. I'd like to know if it's really like that for most traders.
2 - Are you successful traders use no discretion at all, and base your strategy only on strict rules that have been back-tested many many times? Do you really don't care about the single trade and it's all about what the strategy does in the very long run? Does this mean that most successful strategies can be traded automatically? Do you even believe that one can find a successful strategy that can be traded automatically without him paying attention? And where does discretion comes in in successful systems if at all ?
Sorry for the long post...
I'd really appreciate your comments & thoughts about what I asked.
Thanks a lot !
I've read the excellent article "Trading As A Business" by Charlie Wright (got it from the sticky-thread "Information for Beginners" in this forum. Link: http://www.elitetrader.com/tr).
Wright describes the path to being a successful trader in 4 phases:
1 - The Discretionary Trader: "A discretionary trader uses a combination of intuition, advice and non-quantifiable data to determine when to enter and exit the market".
2 - The Technical Trader: "A technical trader uses technical indicators, hotlines, newsletters and perhaps some personally defined objective rules to enter and exit the market."
3 - The Strategy Trader: "A strategy trader trades a strategy method of trading that uses objective entry and exit criteria that have been validated by historical testing on quantifiable data."
4 - The Complete Strategy Trader: "
The complete strategy trader has learned to use advanced cash management principles, trades multiple markets, and may trade multiple strategies in each market."
To anyone who have not read this article I'd mention that the author teaches you to use strict rules for entering and exiting a trade. there is no place for discretion of any kind, which makes the system automatic.
Now to my questions:
------------------------------
1 - Do you agree with the 4 phases? did you experience those phases on your own ? Personally, when I read I thought he was talking about me.. I'd like to know if it's really like that for most traders.
2 - Are you successful traders use no discretion at all, and base your strategy only on strict rules that have been back-tested many many times? Do you really don't care about the single trade and it's all about what the strategy does in the very long run? Does this mean that most successful strategies can be traded automatically? Do you even believe that one can find a successful strategy that can be traded automatically without him paying attention? And where does discretion comes in in successful systems if at all ?
Sorry for the long post...
I'd really appreciate your comments & thoughts about what I asked.
Thanks a lot !