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Trading Pointers

December 21, 2008

Good trading is boring trading

  • Trade only when the market is making presents to traders
  • A good price series will make good of a silly trading system. Choose your instruments with care and caution
  • Nothing will be forever on the markets. A good traders knows to say ‘no’ to intruments,to trades. For a detailed post read this

Courtesy Emilio Tomasini,“Myth and Reality of  system trading”

6 Comments leave one →
  1. December 22, 2008 5:10 am

    “Good trading is boring trading” – how rare it is to hear that! You must be a trader that actually makes money trading. Well… as long as you can handle the bordom. If we can all trade a great system and ‘not care’ when we simply take the signals then it’s quite simple to make a lot of money trading stocks, futures, forex and options – I know!

  2. December 22, 2008 12:57 pm

    Boring? this is quite an interesting observation. Are you trying to connotate that sitting behind a terminal for 12-16 hours a day is flat out boring? Maybe it is, if you are just staring at charts all day!

    Find a way to break up some of that monotony and make it entertaining to a degree!

    • December 22, 2008 1:06 pm

      Sitting behind a terminal is also not trading, my friend 🙂
      The essence behind that statement was that, after a level of proficiency you will soak in(internalise) the system so well, that your decisions will become largely a product of nervous automata.
      And more importantly you will not be able to boast in the party, how did you make million dollars in under half an hours. [or so the party line]
      Try boasting while trading a trend following system. You will lose the guy’s interest in under a minute.

  3. December 28, 2008 1:48 am

    🙂 “nervous automata” is good! Well, at least with my systems that have been developed, traded, tweaked over the past, shoot… 10..11 years (wow i’m getting old). You see the excitement needs to come later – out and away from the market. If you pull emotions into, around or anywhere near your trading you will likely enter “loser zone” where an estimated 95% to 99% of your decision making will be wrong. You could mess up the best of systems (i used to be really good at doing that). On one of my systems a few years back – i should have pulled in 180+ points off a particular stock – i only pulled 30. I was entertaining all sorts of emotions: indulging in the highs, the euphoria, sulking in the lows, worrying, watching the ticker all day (was a swing trend system by the day bars)…. and then in search for more ‘euphoria’ i would start mixing in other trading systems (if anyone was watching me at the time they would said i was ‘mental’ or maybe just would have called me a ‘silly fool’). So on an average 30 option contract per position system trade – at the end of the year i only netted about $60k win i should have mindlessly netted $361,000 and gotten my drama elsewhere (social life, tv etc… )

  4. December 28, 2008 8:52 am

    Kenny, you have touched a chord with me.

    In fact, to a degree, I would agree with TJ too. Because if trading is not fun, from a purely personal perspective, you should be able to enjoy what you do, else you wont encourage the obsession required to move from good or great. But the fun part should not come from cheap emotion swings. The fun part should come from ‘cracking the matrix’

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