Posts

Showing posts with the label study-guide-for-the-new-trading-for-a-living

THE NEW TRADING OF A LIVING- PRACTICAL DETAILS

Image
THE NEW TRADING OF A LIVING PRACTICAL DETAILS Catastrophic Stops: A Professional’s Life Jacket Soon after moving to a house near a lake I bought a kayak, and immediately went  shopping for a life jacket. All I had to do to be legal was to have a jacket in the  kayak—any cheap piece of junk would suffice. Still, I spent good money on a quality  jacket that felt snug and didn’t interfere with rowing when I wore it. All I planned to do with that kayak was to paddle peacefully on a lake, not any where near white water or currents. I never expected to actually need that jacket.  Did I waste my money buying it? Well, if ever some motor boat clips me, then wear ing a high-quality jacket can make the difference between life and death. It’s the same with stops. They’re a nuisance and often cost you money. Still, there  will be a day when a stop will save your account from a life-threatening collision.  Keep in mind that a bad accident is much more likely in the market th

THE NEW TRADING OF A LIVING- TRADING SYSTEMS

Image
THE NEW TRADING OF A LIVING TRADING SYSTEMS A system is a set of rules for finding, entering, and exiting trades. Every serious  trader has one or more systems. Compare this to a surgeon who has systems  for performing operations. He doesn’t waste time and energy deciding whether to  order anesthesia, where to make the cut, or how to find the sick organ. He follows a  well-established routine, which leaves him free to think about strategic issues, finesse  his technique, or deal with any complications. Some people use strictly defined systems that leave very little room for personal  judgment—we call them mechanical traders. Others use systems that leave plenty  of room for personal decisions—we call them discretionary traders. There is a very  thoughtful discussion on matching one’s personality type to various trading styles in  Richard Weissman’s book Mechanical Trading Systems. Whatever approach you take,  the key advantage of any system is that you design it