Whether I am trading stocks or thee 5 min Dow chart what is my primary objective......to earn cash....to predict direction.....to be right? No, I have learnt that as long as I am focusing on trading correctly with no focus on profit all the good things follow. As soon as trading well becomes my 2nd objective I am dead in the water. I know this sounds very obvious but today the penny dropped....this is not a race to riches, trade well...that is all that matters.
What do you mean by trade well? Isn't the measure of trading well reflected by the positive value in your profit/loss column? Making a profit is my primary objective; trading well, i.e. sticking to my system, is my methodology.
ninja, 100% .. hence my course is called trade to trade well .. BRE sticking to your system needs to be your primary objective, in fact nothing else maters .. do that profits will flow focus on profits and fear/greed will kill you system ..
Thats why I suggested a few threads ago that newbies stop looking for the expolsive gains. Make 5% 2 times per month and you will do VERY VERY well (100% + gain in 12 months beating the ALSI and others by a good margin.) Even 1 trade once a month with 5% profit you will beat the ALSI. Less emotinal trades, more intelligent choices (correctly researched trades) with your tested system, more profit.
You will occasionally (maybe 2 a year at most) pick the stock that gives outstandig profits (50% plus). But overall average 40% a year will see you doing very very well in the future.
Making a profit is my objective but not my obsession. Systems are developed to meet that objective. If my system looses money a couple of times, I need to step back, assess the market, study my system again, change it if necessary and test it. I don't think that's quite the same as sticking to my system, period. But I do get your meaning about sticking to your system to enter and exit a trade...
After much deliberation and interesting views and standpoint by the various formites and newbee in these discussions. I have realized that we all want to tell the future. We spend an enormous amount of time trying to predict tomorrows price. As a day trader I have come to the conclusion that with the 100 indicators and 18 systems that I have at my disposal are purely confirming that the trend is up or down. If the price does not follow the TA I call it a false breakout?? to justify the failure of my system. basically all that the systems show is the stock is trending and it is on a upleg or a downleg (sometimes sideways)