difference between a winning trader and a losing trader
- Thread starter biyasc
- Start date
Great post...biyasc...you brought out the difference between loosing and winning traders so well.....great observation...
I would like to add the following to the list :
1) Loosing traders are very bad in record keeping....they put their broker's contract notes under the carpet so that they do not have to see the unpleasant trades again......winning traders analyse the trades,loosing and winning both to work on how to improve their trading performance.
2) Loosing traders think that having a method with 90% success rate is necessary for winning in trading....winning traders know that 90% accurate system is a myth.No one has it....and they work on position sizing and MM so that they acn stay ahead with 50 to 60% success rate method....
3) Loosing traders are very tense in trading because they feel that the trade they have currently on must be a winner.....winners know that they have a method with edge and they will come out ahead if they trade the method for reasonably long period and the current trade's outcome has no bearing on the success in trading in long term.....so they are never tense....they look at the market action with interest but without attachment to any trade.
Best wishes,
Smart_trade
I would like to add the following to the list :
1) Loosing traders are very bad in record keeping....they put their broker's contract notes under the carpet so that they do not have to see the unpleasant trades again......winning traders analyse the trades,loosing and winning both to work on how to improve their trading performance.
2) Loosing traders think that having a method with 90% success rate is necessary for winning in trading....winning traders know that 90% accurate system is a myth.No one has it....and they work on position sizing and MM so that they acn stay ahead with 50 to 60% success rate method....
3) Loosing traders are very tense in trading because they feel that the trade they have currently on must be a winner.....winners know that they have a method with edge and they will come out ahead if they trade the method for reasonably long period and the current trade's outcome has no bearing on the success in trading in long term.....so they are never tense....they look at the market action with interest but without attachment to any trade.
Best wishes,
Smart_trade
Here is a quote from one of my favourite books - "Way of the Turtle by Curtis Faith"
---------------------------------------------------------
Unfortunately, in most fields the number of people who really understand whats going on is very limited. For every true expert, there are scores of pseudo-experts who are able to perform in the field, have assembled loads of knowledge, and in the eyes of those who are not experts are indistinguishable
from the true experts.
These pseudo-experts can function but do not really understand the area in which they claim expertise. True experts do not have rigid rules; they understand whats going on, and so they do not need rigid rules. Pseudo-experts, however, dont understand, and so they tend to look at what the experts are doing and copy it.They know what to do but not why it should be done.Therefore, they listen to the true experts and create rigid rules where none were intended.
One sure sign of a pseudo-expert is writing that is unclear and difficult to follow. Unclear writing comes from unclear thinking. A true expert will be able to explain complicated ideas in ways that are clear and easy to understand. Another common characteristic of pseudo-experts is that they know how to apply complex processes and techniques and have been well trained but do not understand the limits of those techniques.
In trading, a good example would be someone who can perform complex statistical analyses of trades, runs a simulation that generates 1,000 trades, and then assumes that she can draw conclusions from those trades without regard for the fact that they might have been drawn from only two weeks of short-term data.These peoplecan do the math but do not understand that the math does not matter if next week is radically different from the last two weeks.
Dont confuse experience with expertise or knowledge with wisdom.
---------------------------------------------------------------
Reading the RULES of this writeup, I can say that this guy is a pseudo-expert !!
---------------------------------------------------------
Unfortunately, in most fields the number of people who really understand whats going on is very limited. For every true expert, there are scores of pseudo-experts who are able to perform in the field, have assembled loads of knowledge, and in the eyes of those who are not experts are indistinguishable
from the true experts.
These pseudo-experts can function but do not really understand the area in which they claim expertise. True experts do not have rigid rules; they understand whats going on, and so they do not need rigid rules. Pseudo-experts, however, dont understand, and so they tend to look at what the experts are doing and copy it.They know what to do but not why it should be done.Therefore, they listen to the true experts and create rigid rules where none were intended.
One sure sign of a pseudo-expert is writing that is unclear and difficult to follow. Unclear writing comes from unclear thinking. A true expert will be able to explain complicated ideas in ways that are clear and easy to understand. Another common characteristic of pseudo-experts is that they know how to apply complex processes and techniques and have been well trained but do not understand the limits of those techniques.
In trading, a good example would be someone who can perform complex statistical analyses of trades, runs a simulation that generates 1,000 trades, and then assumes that she can draw conclusions from those trades without regard for the fact that they might have been drawn from only two weeks of short-term data.These peoplecan do the math but do not understand that the math does not matter if next week is radically different from the last two weeks.
Dont confuse experience with expertise or knowledge with wisdom.
---------------------------------------------------------------
Reading the RULES of this writeup, I can say that this guy is a pseudo-expert !!
Hi,
To add few simple points to this list :
- Follow some technical system so that you don't end up buying a stock when you should actually selling it & vice versa
- Keep yourself abreast with news flow. For example Sugar stocks were good buy few days back but now after withdrawl of ordinance they are infact good shorting stocks inspite of high sugar prices
- Last but not least Get rid of Fear & Greed while trading
Cheers !!!
To add few simple points to this list :
- Follow some technical system so that you don't end up buying a stock when you should actually selling it & vice versa
- Keep yourself abreast with news flow. For example Sugar stocks were good buy few days back but now after withdrawl of ordinance they are infact good shorting stocks inspite of high sugar prices
- Last but not least Get rid of Fear & Greed while trading
Cheers !!!
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