Tuesday, August 15, 2006

Trade A Minimum System

Trading a minimum system ? Sounds strange ? Not really, I guess to those in the trading game for some time. Let me explain.
  1. You decided to trade
  2. Did the homework
  3. You went after other's systems and it didn't work. Sounds familiar ?

This should be done

  1. You decided to trade
  2. Did the homework
  3. Trading is very personal. One person's indicator is another person's misdirection. Or something to that effect. Get the message ?
  4. Get the system checked by an "expert" (a very rare species, let me warn you.)
  5. This is a system that you will go by for the time being. It works for you. You will know soon enough anyways. The market is a ruthless teacher, isn't it ?
  6. If this system is true to your personality, you will grow with it. By growth, I mean you will only have to make nudges and pushes to the system, not overhauls.
  7. One key clue that can be noted from your performance is that you know instinctively that you have committed a mistake when you really do. This is the verification that indeed the system you have chosen is consistent with your psychological make-up


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