Jul 21, 2016

Trading Is Easy...

"Trading is easy … it’s the research, design, coding, testing and implementation work that’s hard."

Once you obtain a trading edge through research, design, coding and testing then it is all about the mental skills that are necessary to implement it without overriding it and making trading mistakes.

Markets a down a bit right now as the overbought condition is being digested.

Have a great day.

Jul 20, 2016

Looking At Markets With A Biased View

"A great deal of the emotional frustration and disruption of trading that traders encounter is the result of trying to fit markets into a preferred framework, rather than discovering the framework that best describes market behavior." 

Most traders look at a market with a biased view. They expect it to confirm what they are already looking for. Try to look at it as it is. See if what is working is mean reverting or momentum. Apply what you think is fitting best to the recent price action. Keep monitoring price behavior, keep adjusting.

The Most Important Skill In Investing

"Most important skill in investing is knowing what is NOT important. Synthesis = Edge." 

Paying attention only to the relevant information for a trade is a very important skill for a trader. Learn to separate the noise from the signals is a very important step to trading consistency.

Finding Your Own Trading Niche

"In each case, they are doing something very different from what the standard trading books describe. They have found sources of "edge" in markets that they have made their own, and they have been consistent in exploiting those edges." - Brett Steenbarger (trading expert)

The best way to becoming a successful and consistent trader is to find your own niche, your own market. Brett worked with hundreds of traders and saw a pattern of success: do something different, something that it is yours.

Start with an idea, test it and refine till its a workable trading premise. Than exploit it over and over again.

Develop Something To Work In A Specific Market

"Obviously it would be nice if I took a system and found it works on other markets but what I found is a lot of times the markets are so much different so even the ES and the TF for example, they are both stock market indices, they are both pretty correlated but they both have different characteristics that can be exploited and what works on one might not work on the other." - Kevin Davey (systematic trader)

Even similar markets have different behaviors and what works in one market may not work in another. So when we are trying to develop a strategy it may be a good idea to try to develop something to work in a specific market and not trying to build something that works across many markets.