System Trading , Trader's Mindset
Early in my trading career, I had I think above average success developing profitable systems. But, I didn’t have enough capital to deploy them all. As such, my interest in developing new systems waned and growth stalled. This was combined, also, with a strong discretionary capability to call markets and a strong desire to use […]
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A question I have wondered about, and I’m sure others have too, is if we have some bigger edge such as say a system that has multi-point profit target, could we simply capture that edge using a 1 tick profit? In other words, the question we want to think about is whether or not the […]
Continue readingSome traders question whether one can predict direction. I think this is the wrong question. The right question to ask is can one ever know with precision their edge? The answer to that question often determines the actual results that traders experience because most traders end up over leveraging and having poor results. The chart […]
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I have started to think the market is a competition among not just traders but different leverage capacities. A group of traders attempt to detect a signal or edge in the market. The most professional, fastest, and largest among them rapidly arbitrage that edge away. Slower less nimble traders attempt to take advantage of the […]
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Novice traders often confuse the differentiating factors that can make the difference in success or failure. These traders often spend too much time focusing on skills, finding the perfect system or edge, and psychology. Yes, skill is important but it is only part of what I call the triangle of trading success. The triangle consist […]
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My vision for my trading is to become more like a cyborg trader otherwise known as the quantamental approach. I am very good at predicting the market and reading the tape. But, I am not as good at trading when I am down and self doubt causes me to make certain types of mistakes. While […]
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I use a visioning exercise where I imagine how my trading at my best might be different then it is today. I find this technique to be an extremely powerful technique. The fact is that most traders who pursue their craft with dedication and seriousness know the steps they need to take to become more […]
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Many studies have shown that when edges are published by academics or become popularized that the markets become more efficient and those edges cease working or lose at least some of their effectiveness. A really brief story of how the market works. In the beginning, technical analysis was discovered. This initially provided advantage over the […]
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While Tom Lee owns his consensus forecast, as a trader I know that markets often take out short term participants before heading to their eventual targets. As such, I am still weighting whether or not there will be a delayed “post consensus” bump. The thesis for this trade would be that short term traders were […]
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Bitcoin, and some of the other cryptos, are assets which could gain or lose a tremendous amount. In fact, it would not be surprise me if the price does both, perhaps even multiple times in the future. Most professional traders are focused on finding patterns and edge. In order to realize outsize gains, typically leverage […]
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