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Most important question to ask before trading

  • #121
  • Aug 6, 2013 1:30am Aug 6, 2013 1:30am
I know you are a good and experienced trader, so I will believe you know that both pure price action trading (which is what I do) and indicator trading are all dependent on probability, that is they dont work all the time, so for me what a trader should do is get a good system with good win probability, which of course will work in some market conditions and fail in other market condition, from then on his or her concern should be MM which is for me the most important part of trading. This above state of mind of mine is important to me as it help keep me sane during lossing streak.
  • #122
  • Aug 6, 2013 1:40am Aug 6, 2013 1:40am
Quoting onojiwizard
I know you are a good and experienced trader, so I will believe you know that both pure price action trading (which is what I do) and indicator trading are all dependent on probability, that is they dont work all the time, so for me what a trader should do is get a good system with good win probability, which of course will work in some market conditions and fail in other market condition, from then on his or her concern should be MM which is for me the most important part of trading. This above state of mind of mine is important to me as it help...
Well I can see where you're coming from, but I can't really agree. You are correct in that any given system/method will not work under all market conditions, but to enter regardless, and rely on MM is a bit silly. If you have identified which market conditions your method/system is not good at, then why trade in markets where those conditions exist?? Better to sit out the session or trade a different pair where the conditions suit the method/system surely?

The best MM in the world is to only enter high probability trades, and if such conditions are not present, then don't trade! Long and short are both market positions.....keeping your money in your pocket is ALSO a position....and sometimes it is the wise decision.
Doing what you like is Freedom. Liking what you do is Happiness.
  • #123
  • Aug 6, 2013 2:54am Aug 6, 2013 2:54am
Quote
I know you are a good and experienced trader, so I will believe you know that both pure price action trading (which is what I do) and indicator trading are all dependent on probability, that is they dont work all the time, so for me what a trader should do is get a good system with good win probability, which of course will work in some market conditions and fail in other market condition, from then on his or her concern should be MM which is for me the most important part of trading. This above state of mind of mine is important to me as it help...

I'll have to agree with realjumper. Real technical analysts do exist... e.g. people who know what is going on when they look at a chart(s). So if you know what is going on then you should have a plan which exploits the current situation. On the flip side, if you can't see what is going on, then why trade? Better go to a casino, it would be more fun...

Money Management alone is not trading... Money Management is there to make sure you can psychologically handle your trading activities and to make sure you are not forced out of the market because of 1 or 2 bad decisions. (however for the new trader I do believe MM is the most important thing to consider for a trade, because for them staying alive is paramount, so that they can spend the proper time learning this craft)

Anyway that's just my take on it.

Cheers,

-fighter
  • #124
  • Edited 8:00am Aug 8, 2013 6:09am | Edited 8:00am
Quoting fighterdude
{quote} I'll have to agree with realjumper. Real technical analysts do exist... e.g. people who know what is going on when they look at a chart(s). So if you know what is going on then you should have a plan which exploits the current situation. On the flip side, if you can't see what is going on, then why trade? Better go to a casino, it would be more fun... Money Management alone is not trading... Money Management is there to make sure you can psychologically handle your trading activities and to make sure you are not forced out of the market...

Trading

in fact all traders will always loss!

If you go to the 10 biggest forex or stock or any trading company
the people that "rule" are not the traders
but the "risk managers and Risk Dept"

we need to see ourselves as "risk managers" not traders!!
  • #125
  • Aug 9, 2013 11:32pm Aug 9, 2013 11:32pm
If you lose this trade will you still think you did the right thing taking it?
Are you going to make money over the long run doing exactly this kind of trade?

If the answer is "Not sure", don't even bother.
  • #126
  • Last Post: Aug 10, 2013 4:14am Aug 10, 2013 4:14am
That job at WalMart for minimum wage that I turned down to start trading full time with all my savings and a second mortgage on the house is starting to look very good right now.
I hope Mac Donald's is hiring, but wait I can still sell all the furniture and give trading the forex another try ...
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