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Re: trading
By:techie
Date: Sunday, 2 January 2005, 1:50 pm
In Response To: trading (david myers)

The gravity of the loss is totally dependent upon how the loss was incurred.

Since trading is based upon probability of success, and there is not a 100% probability of a trade going in your direction, there will be losing trades.

If you had a trading plan that had a high probability of success, stuck with the trading plan to the letter, and the market moved against your position inexplicably resulting in a loss, that trade defied the probabilities and resulted in a draw down of your account. It happens, and you move on to the next trade.

If, on the other hand, you entered the trade without a trading plan, or altered the trading plan on the fly (I know this is going to turn in my direction so I will move my stop to give it some more room "to breathe"), then you are trading on emotion. Emotional traders are most often losing traders.

Profitable trading depends upon taking trades that have a high probability of success using a repeatable process to make trading decisions.

I would rather take a small loss when a trade goes against a proven trading methodology, than to have a winner based purely on luck. Luck is not a repeatable process.

Messages In This Thread

trading
david myers -- Friday, 31 December 2004, 5:37 pm
Re: trading
Shannon -- Friday, 31 December 2004, 8:53 pm
Re: trading
Erich (vendor, CTA) -- Saturday, 1 January 2005, 8:06 pm
Re: trading
KC -- Saturday, 1 January 2005, 9:52 am
Re: trading
Doc -- Saturday, 1 January 2005, 11:54 am
Re: trading
Rebecca -- Saturday, 1 January 2005, 4:17 pm
Re: trading *PIC*
Spike -- Saturday, 1 January 2005, 6:50 pm
Re: David ... trading
Tom Loge' -- Sunday, 2 January 2005, 1:48 am
Re: trading
GB -- Sunday, 2 January 2005, 8:14 am
Re: trading
techie -- Sunday, 2 January 2005, 1:50 pm
Another Keeper...Read this...
Spike -- Sunday, 2 January 2005, 1:59 pm
This too...
Spike -- Sunday, 2 January 2005, 2:15 pm
Re: This too...
Erich (vendor, CTA) -- Sunday, 2 January 2005, 2:41 pm