November 30, 2005

Traders defeat themselves

As I am planning to quit my job and become a day trader, I have been thinking about the system that I will use. I would like to use almost the same type of trading that I have been currently using, but on a shorter time scale. Similar to my current system, I hope to trade the trends and use strict money management rules. But because of the smaller time scale, the trends will be smaller. Because of the increased number of trades, profits will be smaller and my stops will be more tight.
One of the first places I looked is Maoxian's Trading for Dummies series. He describes a system of day trading in about 100 short lessons:

One sensitive soul wrote in to ask if I wasn't giving away the keys to the kingdom with these how-to posts. The answer is that good trading is 10% methodology and 90% psychology. People defeat themselves. It doesn't matter how often you repeat basic trading principles when almost no one will practice them.

Comments

To me, what you are saying is you make a million dollars from a million trades instead of a million dollars from a few trades.

Monksdream

Posted by: Monksdream at November 30, 2005 01:59 PM

Well, at least I make a million dollars.

Posted by: Ugly [TypeKey Profile Page] at November 30, 2005 08:15 PM


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