It has come to my attention that old time traders that I met tend to say "Keep it sweet and simple". How did they really make money by keeping their system simple ?
The simplest answer that I can think of is this "Old time traders defines when not to trade."
Many times I have seen thread that discusses trading system that grows more complex as time passes by. It usually starts simple and then people lose money and they start introducing new rules. e.g if market is like this, I will do this (repeat 100x and create new 100 rules).
To keep things simple, one should just define when not to trade. "Not to trade" is the hardest part for most newbies.
Everything is back to psychology.
Simplify your system. Define when not to trade at all.
If market is A .. long
If market is B .. short
Everything else (C,D,F,G,H....till Z), do nothing.
Just to share what I have learnt from the old guys that I have met.
The simplest answer that I can think of is this "Old time traders defines when not to trade."
Many times I have seen thread that discusses trading system that grows more complex as time passes by. It usually starts simple and then people lose money and they start introducing new rules. e.g if market is like this, I will do this (repeat 100x and create new 100 rules).
To keep things simple, one should just define when not to trade. "Not to trade" is the hardest part for most newbies.
Everything is back to psychology.
Simplify your system. Define when not to trade at all.
If market is A .. long
If market is B .. short
Everything else (C,D,F,G,H....till Z), do nothing.
Just to share what I have learnt from the old guys that I have met.