[MRC & Co]

A discretionary method is EXTREMELLY difficult to teach, because everybodies psychological makeup is different. Everybody has various risk tolerences, therefore get out/in at various times etc. Some like to fade a trend, some like to trade with the bias of the trend. Some like confirmation to get into a trade, others like to buy pullbacks etc. Once in a trade, some will let it run 30 ticks offside, some won't be caught more than 2 ticks offside. Some will let size run further offside, some will be tighter when they have size on the table. Some will let profits run and take profits when it 'feels' right, others will scale in/out the entire time. The variances in trading styles are DRAMATIC, hence, it is extremelly hard to teach ones trading style exactly to another (unless like the turtles, it is entirely rules based).

If you have a rule by rule trading plan, then you are probably a mechanical trader, and will have to update it in a discretionary manner anyways (hence the arguement between mechs and discretionaries always makes me laugh).

What are you going on about demonds existing but under control? We ALL rasstle with our demons every single day, this is particularly so for discretionary traders as they do not have a strict plan to use and intraday trdaers, whereby that plan would have to be tinkered with numerous times a day, and where days can look completely different from the next, not to mention, where you are constantly watching your trades and need the discipline to sometimes take profits and other times, give them room to move when you have conviction (telling the difference between the two takes a FINE eye). Having that conviction is an entirely different matter.

If you trade intraday for a living, I think you will understand me. If not, then you are probably a cliche, like the rest of the books you read.

[BlowFish]

There are levels of discretionary though some people use the label as an excuse for in adequate planning (I have been guilty of this).

For example you might have a rigorous system of entry stop and target but allow for discretion in passing trades under certain defined conditions. Or you might use slightly 'fuzzy' terms (e.g. 'climactic' volume, strong momentum, low volatility, narrow range). Now you could go as far as describing these terms rigorously (and probably arbitrarily) or allow the trader some discretion applying them. It should still be clear in most cases whether they have followed their plan correctly.

A third case is that the plan (strategy) is fairly loose, however in this case each trade (tactics) should be well defined. This is probably the most discretionary type of approach and does rely more on experience.

If you are going to trade non discretionary it seems a nobrainer to get a machine (or more likely a broker) to trade it for you and so eliminate emotions on execution altogether.

[MRC & Co]

And if you are a scalper, you are taking ticks based on varying order flow patterns, with exits just being a 'feel' many of the times. Perhaps a 1-2 tick stop, but some let positions run offside if they 'feel' it right. Some days correlate to other international markets and you can trade off lags in the correlations, other times they beat to the sound of their own drum. Sometimes intraday, this can be to varying degrees and the trade needs to be dealt with accordingly. These are things that cannot be taught.

A method which can be put into rules and a plan, is more of a mechanical method IMHO. Of course, now we are getting into semantics, however this was my view and are what my above comments are based upon. Most of the best traders I work with are scalpers and don't even have a 'trading plan' written out.

Try teaching that to someone off the net. Most would classify it simply as noise.

[Aikitrader]

Interesting comments.

Thanks for sharing.

[tblack]

I will have to try to look up the names, but there are a couple of guys in Atlanta that teach a course in trading. The ones who do well are able to put up $5000 and have access to 25k. I don't remember any more details.

[darthtrader3.0beta]

Originally Posted by waveslider »

all of a sudden it's a major operation / pain in the a$$, and you used to be your own boss, work your own hours...

Totally agree. Thats why I would only do this if like brownsfan said, it was close family or friends..
The bigger risk to this business I would think is even if the student is profitable, it won't be to long before they have adapted things to make it their own and don't feel they owe the fee anymore.
I don't see how you could really stop someone you never met from saying they are quitting trading, closing their account then just opening with another brokerage and you never hear from them again.