August 27, 2018

Staying unfazed by 17 straight losses early on helped this trader find the Holy Grail of trading

...I realised that the systems and strategies account for only 20 percent of the success. Money management and trading psychology account for 40 percent each if one wants to become a successful trader.

Another important point that I learned from Douglas is one needs to take at least 25 trades with flawless execution before changing the strategy. Yet in my experience, I can tell you that out of 100 traders not more than 5-6 will be able to test a strategy for the complete 25 trades without changing any parameters. It requires a lot of discipline and conviction to complete the 25 trades without tweaking the parameters.

Q: How soon did you turn profitable?

A: This knowledge, however, did not bring me instant success. I was still losing money and winning it back. I was in the revolving door business till Carter told me to look for price action rather than indicators. Technical indicators are just a pictorial indication of price actions. Price action is the purest form of trading, he said.

Read more at https://www.moneycontrol.com/news/business/markets/staying-unfazed-by-17-straight-losses-early-on-helped-this-trader-find-the-holy-grail-of-trading-2882331.html

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