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Which Opinions Are Correct?
The trading world is full of too many different ideas that are hyped excessively. Many a professional often asserts that her/his own trading idea is the best.
Many traders breathe intraday trading, and many endorse investing. Some worship tape reading, while some idolize Fibonacci ratios. Some use supply and demand levels in trading, and some simply scalp. Some espouse chart patterns with Elliot waves, while some use indicators. Certain traders do trend-following only, while certain traders have adopted contrarian trading methods. Trading performances of dedicated chart analysts and dedicated news analysts have been showcased, but each group attempt to disparage the kind of analysis adopted by the opposite group, which has been triumphant. Some say the use of stops is mandatory; some say they’re successful without stops.
The list can be endless…
As Dr. Van Tharp has always put it, people trade their beliefs, not the markets. Dr. Tharp trades according to his beliefs. I trade according to my beliefs, and you trade according to what you believe. What’s useful for you mayn’t be useful for others. If you use something successfully and you’re happy with it, others mayn’t use it successfully. The reason why is because that thing doesn’t fit them. If you disagree with others, you may want to assert that your opinions are superior. What you disagree on mayn’t be useful to you. If you argue that your opinion is the best: remember that many others would always use logical reasoning to underline what they believe and make what others believe appear useless.
The Best Trading Ideas
Experiencing a losing trade or a positive trade turned negative often results in painful feeling, anger, and frustration. Are you in the midst of a discouraging situation? Remember that the markets have immense riches in them. Keep this fact in the forefront of your mind; remind yourself of them repeatedly in your career. Why we mayn’t understand why some market circumstances seem unfair to us at times, we understand that we can still be permanently triumphant in the market.
I know that from personal experience. After I’ve accepted the truth about trading, my experience in the markets has become smoother and better. That’s not to say that I never have losses in trading after this, but every loss is faced with the knowledge that I’m using a positive expectancy system. I never feel sorry I started trading, and I still love the profession today. My only desire is to keep my portfolios safe in face of permanent uncertainties in the markets. I never feel any desire to back down regarding trading.
In the trading world today, the quest for great profits can lead in many directions, but only those who focus on how to control risk and DD will be truly triumphant in the markets. Some contrarian techniques would even allow positivity consistently.
Then what is the best trading idea? Jack D. Schwager’s latest book is titled: ‘Market Sense and Nonsense.’ Ok, this means that there are senseless and sensible ideas in the markets. Good trading ideas would allow you to risk far less than you aim to gain. These ideas would let you know when to enter the market and when to stay out of the market. They’d give you some effective risk control rules. Good trading ideas won’t let you sustain big losses during unfavorable market conditions. Sensible trading ideas would make you victorious in the long run. With these kinds of ideas, you can’t avoid losses, but you’re sure to make more money than you lose ultimately.
Note: Any trading ideas that can’t achieve the objectives in the paragraph above are useless ideas, no matter how popular they’re. Any trading idea is useful only if its balance increases over a long period of time, or there are gains to make at the end of a specified trading period.
Conclusion: Trading isn’t always easy, but the results of commitment to trading success will be evident in your career. You shouldn’t expect to get an emotional uplift or feeling of quiet peace every time you trade, but as you continue your commitment, your attitude, outlook, and conduct will be like those of matured traders who are called market wizards. Speculation is full of challenges, but we can overcome them all.
This piece is ended with the quote below:
“The best theory doesn’t do you any good unless it works in the real world.” – Larry Connors
Source: Paxforex.com
Ground-breaking lessons from expert traders: http://www.harriman-house.com/experttraders
