The two fundamental and defining questions that all discretionary traders need to ask themselves are:
Please give these questions some thought before I provide the best answers I could think of:
This post is not meant to discourage discretionary trading. But, we should know precisely what we are doing as discretionary traders while being careful against fooling ourselves about what we are doing. In fact, based on the above list we can identify the likely qualities of more successful discretionary traders and how they are likely to differ from the lesser successful traders.
The following is a list of qualities that will define the lessor successful traders:
Final thought, the successful discretionary trader recognizes their strengths and tries to emphasize those strengths while minimizing weaknesses. A speculative trader, who isn’t viewing the market statistically, will want to trade on a lower frequency while a pattern trader probably may need to trader more frequently in order to fully harness their abilities.
The author is passionate about markets. He has developed top ranked futures strategies. His core focus is (1) applying machine learning and developing systematic strategies, and (2) solving the toughest problems of discretionary trading by applying quantitative tools, machine learning, and performance discipline. You can contact the author at email@example.com.
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