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The Brutal Truth of Trading

  • #1
  • First Post: Jul 29, 2021 9:31am Jul 29, 2021 9:31am
Since I was banned from the thread The brutal truth of day trading by the thread starter (who has no activity for several month and I suspect it is just another "Peter" or Aussi account) let's start new thread - The Brutal Truth of Trading!

Rules: No scam and lie. Please don't tell us about 5-6% daily profit or >100 lot size positions.

Note: This is note anti-thread. I just don't want to see scammers around.
Observer effect
  • #2
  • Jul 29, 2021 9:44am Jul 29, 2021 9:44am
There are 7 trading commandments:

1. Trading is similar to professional sports. You can post any results on forum but if you will face well-prepared boxer on the ring your nose will be broken.

2. You have to train. More you trade the better skills you will have. Patience, mood, psychology can help but will never make you a good trader.

3. Trading is a job. It is not a part-time "I'll click buy/sell after main job".

4. Using algos and computer power is not a shame but competitive advantage.

5. Traders who sell courses do not make money from trading.

6. Stop loss and risk-reward fairy tales are just forex fairy tales.

7. Those who boast of unrealistic results on the forums are clearly hiding something.
Observer effect
  • #3
  • Aug 1, 2021 10:41am Aug 1, 2021 10:41am
Elliott Wave theorists posit that the only markets worth trading are the super liquid ones like SPX, EURUSD, and the like.
Supposedly the cash/spot market is so large that no single entity can corner it, and this gives rise to the formation of patterns.
I am not so sure that I buy that and don't follow EW for this reason.
To me the brutality of trading even the most liquid instruments (EURUSD in particular) is that a whale like entity or cartel of entities
will generate sudden volatility, shake smaller traders out of their positions and feed on them, as they move to restore equilibrium.
Similar to how whales/sharks feed on a school of fish.
Less liquid instruments are even worse, For example BTCUSD.
You think you have a great system, back tested, odds firmly in your favor.
Then Elon Musk opens his mouth and the price swings 10% in whatever direction, making you look like a fool.
  • #4
  • Aug 1, 2021 12:41pm Aug 1, 2021 12:41pm
Quoting snikoz-cad
Elliott Wave theorists posit that the only markets worth trading are the super liquid ones like SPX, EURUSD, and the like. Supposedly the cash/spot market is so large that no single entity can corner it, and this gives rise to the formation of patterns. I am not so sure that I buy that and don't follow EW for this reason. To me the brutality of trading even the most liquid instruments (EURUSD in particular) is that a whale like entity or cartel of entities will generate sudden volatility, shake smaller traders out of their positions and feed on...
the market environment is given, we cannot change that.
the situation is that you have to thrive in such an environment.
  • #5
  • Aug 1, 2021 1:07pm Aug 1, 2021 1:07pm
Quoting snikoz-cad
Elliott Wave theorists posit that the only markets worth trading are the super liquid ones like SPX, EURUSD, and the like. Supposedly the cash/spot market is so large that no single entity can corner it, and this gives rise to the formation of patterns. I am not so sure that I buy that and don't follow EW for this reason[...]
I don't buy EW for another reason: Lock 5 Elliot wave theorists in one room and they'll count 5 waves in 5 different ways.
Air force
  • #6
  • Aug 4, 2021 5:58am Aug 4, 2021 5:58am
Quoting W0lfram
{quote} I don't buy EW for another reason: Lock 5 Elliot wave theorists in one room and they'll count 5 waves in 5 different ways.
The problem is also working with a fixed structure in mind. We need to allow markets to generate random swings and time cycles and let ourselves concentrate in the global state of markets.

Having a clear idea of where we want to go, the way we reach a level or the time it takes to is irrelevant as long as we do not bet too much in a single trade.

This helps a lot specially when trading volatile markets like cryptos. You may see yourself on the other side of your initial market as you are constrained to hold for weeks or months the initial positions.
  • #7
  • Mar 4, 2023 6:01am Mar 4, 2023 6:01am
Quoting ryuryu
There are 7 trading commandments: 1. Trading is similar to professional sports. You can post any results on forum but if you will face well-prepared boxer on the ring your nose will be broken. 2. You have to train. More you trade the better skills you will have. Patience, mood, psychology can help but will never make you a good trader. 3. Trading is a job. It is not a part-time "I'll click buy/sell after main job". 4. Using algos and computer power is not a shame but competitive advantage. 5. Traders who sell courses do not make money from trading....
7 trading commandments? Really? These are just opinions not commandments.
  • #8
  • Mar 4, 2023 6:26am Mar 4, 2023 6:26am
Quoting W0lfram
{quote} I don't buy EW for another reason: Lock 5 Elliot wave theorists in one room and they'll count 5 waves in 5 different ways.
The concept of "Elliot Waves" can not be denied. You can observe the phenomenon in every chart you look at. How to profit from the phenomenon is a different conversation.
  • #9
  • Mar 4, 2023 8:21am Mar 4, 2023 8:21am
Quoting beastwork
{quote} The concept of "Elliot Waves" can not be denied. You can observe the phenomenon in every chart you look at. How to profit from the phenomenon is a different conversation.
Exactly. Just like everything else that isn't easily put into a process that everyone can agree on.
  • #10
  • Last Post: Mar 7, 2023 1:50pm Mar 7, 2023 1:50pm
Quoting FocusWinReal
{quote} Exactly. Just like everything else that isn't easily put into a process that everyone can agree on.
That's trading for you. Elliot wave theory is just another way to say buy the dip. You get to define for yourself what constitutes a dip. No consensus necessary, only profitability.
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