System trading vs discretional trading

[System trading vs discretional trading]

Discretional Trading is what seperates a good trader from the rest. A feel for the markets, an eye for a trade, all of these come into play.

 

System Trading can be useful and very profitable although in the past I always found myself adapting my "system" as I went on. Thats the problem with systems, you always feel you can improve them.

 

Well said. Traders with a good feel of the markets will always be above other traders who rely on signals but never have a feel for the markets.

 

A batter with a good eye for the ball is a much better player than a .250 slugger. Just read Money Ball.

[Does Education Matter in Trading?]

I dont think education matters in trading as long as the individual is somewhat intelligent. What is more important is that he or she must have a very independent and strong mind.

[Have you ever Traded because you were bored?]

It is the same for most traders - bored, looking for something which is not there, and then regret.

 

I have done this on a number of occassions, but now I try to make use of "slack periods" and maybe catch up on my research, spend some time with the kids, etc.

 

The majority of traders have very active minds which are analysing situations all of the time, and if you are like me, you hate being bored!!!

 

I agree... traders like the action. I personally have a hard time dealing with boredom. I need to keep my mind stimulated constantly.

 

Its good to get other things done during lunch hours to fresh up your mind.

[How Long Did It Take You To Become Profitable?]

3 years until I started seeing profits.

[The Importance of the Closing Price]

While there are a lot of good comments above, I am not sure it is really as straight forward as some think.

 

I agree that the first stock price of the day reflects the perceived demand for the stock at the open, and perhaps a little bit of completing orders from the day before. However, it is a little simplistic to say that the closing price is so predictable, because there are many factors to consider.

 

A lot can happen to the momentum of a stock from start to close.

 

 

Yes, alot can happen from the opening to close. However ,even if the range was 10 S&P points if the market closed half a point from the open, this indicates a neutral market. Neither the bulls or the bears were victorious.

[Concept I don't quite understand]

To the downside, a stock can only got to zero. To the upside, a stock can go to infinite. Although this will never happen in reality, you need to consider the possible loss when going short. Let's say you owned a stock at $1 and watched it go to zero. Your loss is $1 per stock. However, if you were short a $1 stock just to watch it go to $100, your loss is $99 per stock. This is just a simple example. I dont think any trader is stupid enough to hold onto a loss like that.

 

The good part about shorting is that stocks tend to fall faster than they rise. Money can be made more quickly in a downtrending market if you are short than an uptrending market if you are long. People panic in fear and rush to dump a stock causing swift declines.

[New Trader here, Need some help]

You say you trade the firms money.. are you a prop trader? Do you work for an investment firm?

 

You seem to have full discretionary control of your trading capital.

[Hedge fund list]

lol yea i agree.

[New Trader: Should I Call It Quits?]

Amen. Amen. Amen.

 

Would Boeing tell new pilots to read a book on flying a 747 and then stick them in cockpits?

 

Would you read a book on Judo and tell someone, "alright now, come at me with that knife."?

 

Would you read a book on how to play guitar and expect to cut a record when finished?

 

You can learn from books, tapes and seminars but nothing replaces practice. If you can't afford a real-time datafeed and simulator, at least find a free delayed feed and paper trade. Practice, practice before you step in the ring against the world champions of trading.

 

Nicely said. Practice makes perfect. There is no other teacher in trading other than experience.

[Number of Markets to Trade]

Market profile works with the 30yr bonds also.

 

I am not sure about the forex markets. This is because government policies affect the forex and price willl move because of fundamental reasons.

[Intuition and Trading]

With experience traders build intuition of the markets. They are able to understand market action, sense strength and weakness, and anticipate market movements through intuition. This seems to be the ultimate level in trading.

 

My question is: How long does it take to develop such intuition? How can one achieve this ultimate level?

 

Thank you.

 

Thousands of hours. I think to reach peak performance, one must be actively involved in the markets day in and day out for over 6 years. Stick with your strategies and plan. Intuition will develop naturally.

[A New Traders Journey to Success]

Somethinng that we can all relate. Good post.

[Number of Markets to Trade]

I am sure if you are good at one market, you can easily switch to a different market if it hits a dry spell. Money is made only where the action is. Gold was a very good market to be trading a few months back.

 

I don't think you will have trouble with a dry spell if your speciality is index futures.

[Is it possible to start trading FOREX with $1000?]

Im still in the process of learning. Will attend a seminar next month. Anyone recommend any good seminars?

 

Forget the seminars. Spend that money in actual learning of the markets. If you interested in Forex, open a mini account and spend that money on your educational fee. Educational fee = market donation.

 

Be prepared to lose. Once you learn not to lose, you will learn what is required to win.

[How long does it take to become a successful trader?]

Depends on your speed of learning and passion. You really need a thick skin to go through the massive pain in the early development stages. I suggest you get a mentor. That will reduce your learning curve.

[Trading Question: Newbie status]

I would like to learn more about the different technical indicators and tools one can use in trading. Where can I possibly look? Thank you

 

Look in your trading software. It should offer a brief description of all the indicators they include. Tradestation has one.

[Opening gap. How to play them?]

I have read alot about trading the opening gap. I have also noticed that they tend to close the same day majority of the time. To learn this strategy, what will I need to look for? Should I fade at the open? What is the percentages of success? I do not normally trade the first 15 minutes but will be interested in applying a new tactic.

 

Why don't you backtest it and obtain the data yourself? The best way is to study it, test it, and devise your own trading methods.