Many new traders believe that large successful traders have some secret system or indicator which never fails. This is far from truth. Truth is these traders methods also have losing trades. But because of this false notion a new trader goes on system hopping spree and never understands that good system is just 1 part of trading. Other more important parts are Reward to Risk Ratio, MM, Trade management.
I remember having read an interview of a large US trader Paul Tudor Jones. He it seems had caught the bottom of the market ( some T bonds I think ) and the interviewer was congratulating him for being so accurate. The reply from Paul Tudor Jones was something as under :
It is true that I caught the bottom of the market and the newspaper headlines are shouting that " Paul Tudor Jones caught T bonds market at lowest tick ( at bottom) but the fact is I caught it on my 5th try.....my earlier 4 attempts failed and I had to take my loss. But newspapers and magazines will not talk about earlier 4 failures as it does not make a great eyecatching story for them."
Now think about it. A trader like Paul Tudor Jones does not have a never fail system and we average traders are running after it.
Incidently Paul Tudor Jones is believed to be trading many of De Mark systems and research.
Smart_trade
__________________
While amateurs go broke by taking large losses,professionals go broke by taking small profits...... William Eckhardt in New Market Wizards
I remember having read an interview of a large US trader Paul Tudor Jones. He it seems had caught the bottom of the market ( some T bonds I think ) and the interviewer was congratulating him for being so accurate. The reply from Paul Tudor Jones was something as under :
It is true that I caught the bottom of the market and the newspaper headlines are shouting that " Paul Tudor Jones caught T bonds market at lowest tick ( at bottom) but the fact is I caught it on my 5th try.....my earlier 4 attempts failed and I had to take my loss. But newspapers and magazines will not talk about earlier 4 failures as it does not make a great eyecatching story for them."
Now think about it. A trader like Paul Tudor Jones does not have a never fail system and we average traders are running after it.
Incidently Paul Tudor Jones is believed to be trading many of De Mark systems and research.
Smart_trade
__________________
While amateurs go broke by taking large losses,professionals go broke by taking small profits...... William Eckhardt in New Market Wizards