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The 3 Elements of a Successful Trader

  • #81
  • Apr 26, 2012 11:51am Apr 26, 2012 11:51am
LOL, did I write "spreadbutts" somewhere? I know I mde a typo with "spreadbutter".
If I wrote the former, I really am getting in hot water.


Quoting Spreadbetter
Don't worry mate, your Freudian slip (spreading butts) is safe with us
  • #82
  • Apr 27, 2012 1:11am Apr 27, 2012 1:11am
Quoting Spreadbetter
..Initially we angst over "the system", yet even random entries can work if the MM is right which is why I'd always regard it as the most important issue.
I read in somewhere,and now in this thread even by random entries, (as long as we use good MM & high RRR) will give us proftable results..

If it's that simple we can just program an EA: eg. MA crossover entry with RRR 1:2 or more, 2% of acc. for each trade.

Will it profitable in the long run.. ?
  • #83
  • Apr 27, 2012 11:48am Apr 27, 2012 11:48am
EA's cannot make the adjustments that humans can. Many times there is a set entry based on the system, but as price action continues something changes, and so the adjustment needs to be made. It looks so simple, but it is part of the reason EA's are so misleading. They also cater to lazy people, because it appears there is no work.


Quoting Les Lau
I read in somewhere,and now in this thread even by random entries, (as long as we use good MM & high RRR) will give us proftable results..

If it's that simple we can just program an EA: eg. MA crossover entry with RRR 1:2 or more, 2% of acc. for each trade.

Will it profitable in the long run.. ?
  • #84
  • May 1, 2012 12:13am May 1, 2012 12:13am
Quoting Les Lau
I read in somewhere,and now in this thread even by random entries, (as long as we use good MM & high RRR) will give us proftable results..

If it's that simple we can just program an EA: eg. MA crossover entry with RRR 1:2 or more, 2% of acc. for each trade.

Will it profitable in the long run.. ?
Random entries won't work.

Entry with 'hunch' require good instinct, this shouldn't be called a 'random entry'...
Good hunch Entry couple with a high RRR will be profitable.
  • #85
  • May 1, 2012 12:21am May 1, 2012 12:21am
Lower RRR trades give higher winning percentage, and vice versa.

1 good method to trade is to combine both.
Use Double Entry positions, 1st position use lower RRR (can be slightly lower than 1), 2nd position let the profit 'flow'..

  • #86
  • May 1, 2012 12:41am May 1, 2012 12:41am
Another strategy is to add on position(s) after 1st entry is positive/ profitable..
  • #87
  • Edited 1:12am May 1, 2012 1:02am | Edited 1:12am
Support Resistance(SR) Trading:
Don't predict that price will move & rebound at a certain SR level, then put a pending(limit) order..

Better way : after price hitting SR or reaching a 'maximum limit'/ extreme, wait 1st for a confirmation pattern(s) eg. candlestick pattern , then only make entry.
  • #88
  • May 1, 2012 1:37am May 1, 2012 1:37am
Time Frame(TF):
Use bigger TF(s) to draw SR, then can also use smaller TF for precise entry/ to trade.
  • #89
  • May 1, 2012 4:16am May 1, 2012 4:16am
Day Trading:
Select certain(market) hours in a day that have nice patterns & great liquidity
Do a lot of backtesting & practice
  • #90
  • May 1, 2012 3:32pm May 1, 2012 3:32pm
I think the 3 elements that would make a successful trader is:

A simple system + Discipline + Relaxation

A simple system:
From making pips, I learned that "the truth is you only have to master a few simple set ups and do it over and over again". For my case, I use PIN BARS. If you don't know what that is, check out james16

After you know your simple set up, then you focus on your money management strategy which just means - have a Stop loss, a target profit and move to break-even as soon as possible.

I have suffered and gain lots of money and I realize that moving the stop loss to break-even is extremely important. It is the key determinate to controlling your wealth. The sooner to move your stop loss, the less risk you are exposed to, the more trades you can make and wait for the big winner.

Discipline:
This simply means you follow through with your strategy. It means that you know what your strategy is and you don't wonder off track from it.
That's why it is so important to write your strategy down. Even if those are just simple rules. Writing it down takes the burden off your mind and you jsut refer to it on a piece of paper. It is like having a cheat sheet in front of you when you are doing exam.

You then can focus on the market and see if there are any good opportunities.


Relaxation:
When first started trading, I was really stress out. Especially when I move from demo to real trading. Even though it is just the same system, the same look, I am really stress about making a trade. This is simply because I really want to win, to earn money. But the more I become stressed, the less i perform well and the more risk I take.

Think about where you want to be, or how much do you have to earn to have a sustainable trading business. Laid out your plan step by step and remember your final goal. If you are so stressed out from the start, how are you going to get there?

So the very first line of my plan is - Focus and REALX.

(It is going to be okay.)
  • #91
  • Edited May 2, 2012 9:26am May 1, 2012 8:25pm | Edited May 2, 2012 9:26am
Be as Objective as possible when doing analysis, setup entry & backtesting

Accept the reality, release the mentality of bias, 'should have done that', & 'hoping'

Emotional stable. Get rid of overconfident & feeling of despair (swing mood)

The world is a reflection of our inner mind, do not dwell upon others shortcoming, see their qualities

Striving to get better, do not seek for perfection
  • #92
  • May 1, 2012 8:56pm May 1, 2012 8:56pm
Quoting setoeric12
...
A simple system:
From making pips, I learned that "the truth is you only have to master a few simple set ups and do it over and over again". For my case, I use PIN BARS. If you don't know what that is, check out james16

After you know your simple set up, then you focus on your money management strategy which just means - have a Stop loss, a target profit and move to break-even as soon as possible.

I have suffered and gain lots of...
Good post. Tq
  • #93
  • May 2, 2012 6:35am May 2, 2012 6:35am
Quoting Les Lau
Recently i contemplate a lot on what makes a trader successful.
Here's my insight.. .

Edge(system) + Discipline(psychology) + Good Karma(spiritual)
= Successful Trader

System, psychology, spiritual, these 3 elements are interconnected.
Trader should improve & work on these 3 areas.

I will post more about this topic, everybody is welcome to give ur
precious comments as well..

Cheers!
Yes!! I really agree on what you said! A successful trader must have discipline!!
  • #94
  • Edited 10:16am May 2, 2012 9:56am | Edited 10:16am
Su Dongpo, a famous scholar of the Song Dynasty & Zen Master Fo Yin were good friends, and they liked to poke fun at each other.
One day they had a sitting meditation session together at Golden Mountain Temple.

After a while, Su Dongpo opened his eye and asked Fo Yin:

"How do I look in meditation?"
"Very magnificent. Like a Buddha!"
Su Dongpo was delighted to hear that.

Master Foyin then asked him, "Scholar, what do you think of my sitting posture then?"
Su Dongpo purposely teased Fo Yin: " Like a pile of shit.”
Master Fo Yin simply smiled and did not refute.
Su Dongpo was very proud and thought that he had beaten Fo Yin.

Back at home, Su Dongpo was pleased to relate the incident to his sister Su Xiaomei.
After hearing the whole story, his sister on the contrary laughed.
Su Dongpo curiously asked: ”What is there to laugh about?”

Su Xiaomei told Su Dongpo straight to his face, "Brother, you actually lost. It is because Master's mind is actually that of a Buddha that, so he sees you like a Buddha. On the other hand, your mind has a pile of shit, so you see other like a pile of shit."
Su Dongpo, realizing his Zen practice was far inferior to Master Fo Yin, was speechless.
  • #95
  • May 9, 2012 3:55am May 9, 2012 3:55am
“若真修道人，不见他人过。” --- 六祖惠能

A real practitioner doesn't look at & dwell with other person mistakes
--- Six Patriach Hui-neng
  • #96
  • May 9, 2012 4:16am May 9, 2012 4:16am
I also consider that System, psychology and spiritual play important role to become a successful trader. However I want to add trading strategies as forth element.
  • #97
  • May 11, 2012 9:13am May 11, 2012 9:13am
Quoting Tarusmark27
I also consider that System, psychology and spiritual play important role to become a successful trader. However I want to add trading strategies as forth element.
I place trading strategies under System/ Edge.
  • #98
  • May 11, 2012 9:39am May 11, 2012 9:39am
Trading Breakout: time of trading is crucial..

False Breakout Trading: more opportunities, use S/R, candlesticks confirmation(reversal) pattern for entries.
  • #99
  • May 11, 2012 9:43am May 11, 2012 9:43am
Maitreya Buddha Image

http://www.qsdfsw.com/fjtk/UploadFil...2411145015.png
  • #100
  • May 12, 2012 3:01am May 12, 2012 3:01am
Quoting Spreadbetter
When I first traded I refused to call my trade "a bet" now I do and tbh it's quite cathartic. It's a bet, it's a two horse race, but once you pull the trigger you have to accept you have absolutely no idea what the outcome is. The only controls you have are your money management skills and your emotional self control. We simply place our bets based on our edge which in turn is (at best) nothing more than a higher probability of a favourable outcome.
That's all you need
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