Introduction
After seeing the number of excellent discussion threads on FF, I thought I'd give this a shot. I've been trading for 16 years (full-time for the last three) in the equities & equity options markets and now Forex as well for the last four. I got the trading bug from working in the financial industry designing and developing computer systems and often working in direct contact with traders in the electrifying atmosphere of the trading floor. I started out knowing nothing about trading and initially got my rear-end kicked a number of times until I realized I had to treat this endeavor like a business if I wanted to have a chance in the long run. Why would an otherwise sane person step into a ring with a black-belt thinking they've got a chance past a lucky quick shot (read successful single trade)? When you take a position in a market, there are plenty of pros out there who will be happy to take your money if you don't know what you're doing.
Today, trading comes "fairly" easily as do the profits. And while I've improved as a trader, the number of inquiries from people regarding my trading style and how I develop systems has increased as well. I hope to cover some of these questions here as it relates to (mostly) system development.
Most everything I've learned about trading, I picked up from someone else at some point and then adapted into my own style of trading and I'd like to now help others. "A candle loses nothing lighting another candle" as the saying goes if I may be so bold as to assume I've got something worthwhile to pass on to others. For starters, I've learned (the hard way) that the success formula looks something like: Quality Input + Hard Work + Discipline + Some Originality = Success in trading -- or any other business. While this may be old hat for the seasoned traders on FF, if you're just starting out, be aware that no matter how much you learn from other people, no one will be able to do the hard work for you, especially in the key areas of trading psychology and discipline -- and one could argue the latter is an integral part of one’s psychology as well although I like to separate the two out for practical purposes.
So, what I'd like to do here is first go over some background info on trading itself (as I understand it) to give this topic a proper backdrop without which even the "best" trading system will fail, so hang in there for a bit. Then we can discuss what goes into developing a trading system that suits your trading style, i.e. something you're comfortable with and know inside out that you can then ultimately stick with in the market(s).
(I will add posts as time permits)
After seeing the number of excellent discussion threads on FF, I thought I'd give this a shot. I've been trading for 16 years (full-time for the last three) in the equities & equity options markets and now Forex as well for the last four. I got the trading bug from working in the financial industry designing and developing computer systems and often working in direct contact with traders in the electrifying atmosphere of the trading floor. I started out knowing nothing about trading and initially got my rear-end kicked a number of times until I realized I had to treat this endeavor like a business if I wanted to have a chance in the long run. Why would an otherwise sane person step into a ring with a black-belt thinking they've got a chance past a lucky quick shot (read successful single trade)? When you take a position in a market, there are plenty of pros out there who will be happy to take your money if you don't know what you're doing.
Today, trading comes "fairly" easily as do the profits. And while I've improved as a trader, the number of inquiries from people regarding my trading style and how I develop systems has increased as well. I hope to cover some of these questions here as it relates to (mostly) system development.
Most everything I've learned about trading, I picked up from someone else at some point and then adapted into my own style of trading and I'd like to now help others. "A candle loses nothing lighting another candle" as the saying goes if I may be so bold as to assume I've got something worthwhile to pass on to others. For starters, I've learned (the hard way) that the success formula looks something like: Quality Input + Hard Work + Discipline + Some Originality = Success in trading -- or any other business. While this may be old hat for the seasoned traders on FF, if you're just starting out, be aware that no matter how much you learn from other people, no one will be able to do the hard work for you, especially in the key areas of trading psychology and discipline -- and one could argue the latter is an integral part of one’s psychology as well although I like to separate the two out for practical purposes.
So, what I'd like to do here is first go over some background info on trading itself (as I understand it) to give this topic a proper backdrop without which even the "best" trading system will fail, so hang in there for a bit. Then we can discuss what goes into developing a trading system that suits your trading style, i.e. something you're comfortable with and know inside out that you can then ultimately stick with in the market(s).
(I will add posts as time permits)