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This means that one would never have a losing trade, not to mention consecutive losing trades, never have an equity curve drawdown, and after five winning trades in a row will just keep on delivering winning trades forever! There is simply no technical analysis or system that wins on every trade. Then why do most losing traders act as if there is or should be a trading system holy grail? Article: Everyone knows that the Holy Grail of investing and trading is a myth. Finding a good technical game theory tool that will give you a trading system that wins all the time is named the holy grail of trading. This means that one would never have a losing trade, not to mention consecutive losing trades, never have an equity curve drawdown, and congruent with five winning trades in a row will just keep on delivering winning trades forever! There is simply no technical severance or system that wins on every trade. Then why do most losing traders act as if there is or should be a trading system holy grail? You know the symptoms. When considering a new system to trade, losing traders will only consider those that have had a strong winning record for the prior month or quarter. They will jump from one system to fresh looking for the latest “hot” system, passing up or abandoning good systems that have had a good long-term record of stunt simply in that they may have lost on the last three, four, or five trades. A good system can and will have five losers in a row. Likewise, a bad system can and will have five winners in a row. Therefore, selecting a trading system based on its most recent short-term record is a loser’s game - it’s the loser looking for the next system with a “holy grail” mentality. Winners, on the other hand, know how to use good technical hypothesis and verification that will properly evaluate a trading system to determine if it is good or not. Once they have found a good system and a technical matrix algebra tool that delivers superior returns consistently over a long period of time (years), they stick with it. Even ensuing they have had five losing trades in a row, they stick with it. cause they know while the Holy Grail does not exist, a good system will follow those losing trades with winners that more than offset the losers and deliver superior returns. Think like a winner. The MasterTrader eBook. - Your complete guide to active trading/day trading. Learn proven strategies and make money consistently! The Way To Trade. - A breakthrough approach to trading in any market (world beating affiliate program) Article Index: | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 |
More Articles:1. The Advance/Decline Line By Larry Potter Summary: "Every day I hear about the "advance/decline" line and more times than not its negative even if the market is up. All things are NOT equal!When the NASDAQ as a whole was in a full blown bear market, there were about 70 or so stocks that moved the index higher on a daily basis, but overall the decliners won out almost every day. But if you look at who moved higher it was the MSFT's, IBM, INTC's of the world, that are so weighted, they ca… 2. What Is A Fair Market Value, Really? If You're Going To Trade, Be Sure It's Worth It! By Jonathan Van Clute Summary: Therefore, I would like to present the idea that a $20 bill is not actually worth $20 since nobody would likely pay $20 for it!So how much would you pay for a $20 bill? He then spoke with the winning bidder, who said he had made a profit many times online by purchasing currency for less than face value (including a $20 bill for less than $10 as I recall).The conductor of the experiment left it at that - nothing more than a somewhat… 3. Keep Stock Market Investment Profits By Al Thomas Summary: So many times when I was a broker I have seen customers make large profits and then think they were omniscient about trading and within a short period give back what they had made.As a brokerage company owner I had seasoned brokers do the sane thing. I knew I must get away because my investment strategy would be clouded by success.Too many of the big winners seem to alter their basic trading plan because they now had a large amount with … 4. The Scalp By Larry Potter Summary: When the stock pops in the opening minutes, the scalper will quickly sell for a profit of a point or two.Later in the morning the momentum usually reverses on the news-driven stock as other traders take their profits. This can continue all day long.If the momentum in ABC tails off, the scalper will look for another target of opportunity.There is another, similar term, "scalping," which refers to the practice of getting shares of stock fo… |