Any DON"T DO lists for trader?

Discussions about personal psychology for the individual trader.
Post Reply
oem7110
Roundtable Knight
Roundtable Knight
Posts: 381
Joined: Wed Jul 12, 2006 9:33 pm

Any DON"T DO lists for trader?

Post by oem7110 » Wed Aug 31, 2011 1:22 am

Does anyone have any suggestions on any DON"T DO lists for trader?
Thanks in advance for any suggestions

rhc
Roundtable Knight
Roundtable Knight
Posts: 464
Joined: Tue Nov 18, 2008 8:46 pm
Location: Oz

Post by rhc » Wed Aug 31, 2011 7:02 am

The 'Non-Essentials' (a.k.a. things you shouldn't do)

1) Cut your Winners
2) Ride your losses
3) Disregard risk
4) Don’t use stops
5) Buck your system
6) Follow the news

And lastly,

7) DO NOT deep fry a turkey whilst naked. (applies to all traders as well as everyone else)

oem7110
Roundtable Knight
Roundtable Knight
Posts: 381
Joined: Wed Jul 12, 2006 9:33 pm

Post by oem7110 » Wed Aug 31, 2011 5:02 pm

Thank you very much for your suggestions on the lists for position execution.

What about any DON'T DO lists for Trader Psychology and Money Management?


Does anyone have more suggestions?
Thanks everyone very much for any suggestions

svquant
Roundtable Knight
Roundtable Knight
Posts: 126
Joined: Mon Nov 07, 2005 3:39 am
Location: Silicon Valley, CA
Contact:

Post by svquant » Wed Aug 31, 2011 5:51 pm

rhc - what about on #7 if you use some underwear as a "stop loss"? :shock:

oem - onto your request, one that many have heard of is not to significantly change (or modify at all) your system in the midst of a (large) drawdown. It is a play on that our human emotions get us to do things at exactly the wrong time and one should be contrarian, i.e. screw with the system when making new highs! Seen a few CTAs blow up this way, i.e. lose faith in a system during a large drawdown, scrap it and never recover with the new system when sticking with the old system they would have recovered nicely.

Of course the above assumes the original system was good in the first place but if you use any of the robust trend following systems discussed in these forums you'll run into this issue when you hit the MaxDD that is 1.5-2.0x larger than your backtest. What do you do?

Roscoe
Roundtable Knight
Roundtable Knight
Posts: 250
Joined: Sat Jan 24, 2004 2:06 am
Location: Houston TX

Post by Roscoe » Thu Sep 01, 2011 2:31 am

8) watch the news or read any newspaper (comics are OK).
9) think too much.
10) give or take tips.

Agree with all others, particularly #7.

AFJ Garner
Roundtable Knight
Roundtable Knight
Posts: 2040
Joined: Fri Apr 25, 2003 3:33 pm
Location: London
Contact:

Post by AFJ Garner » Thu Sep 01, 2011 5:15 am


loriot35
Contributor
Contributor
Posts: 1
Joined: Mon Oct 11, 2010 9:28 am
Location: germany
Contact:

Post by loriot35 » Sat Sep 17, 2011 1:19 pm

I think an important thing is: Don`t double in trouble

that was my biggest mistake in beginner times and it results in losses that you cant take under psychical control :-(
So now i trade with a stop loss and i always have the risk under control

ecritt
Roundtable Knight
Roundtable Knight
Posts: 134
Joined: Sat Aug 28, 2004 3:44 am
Location: Phoenix, AZ
Contact:

Post by ecritt » Sun Sep 18, 2011 6:55 am

Don't have unrealistic expectations. Don't let wants take precedence over needs. Don't think it's different this time. Don't think you are too late or too powerless to do the right thing.

Roscoe
Roundtable Knight
Roundtable Knight
Posts: 250
Joined: Sat Jan 24, 2004 2:06 am
Location: Houston TX

Post by Roscoe » Mon Sep 19, 2011 5:07 am

...and never ever forget #7.

rabidric
Roundtable Knight
Roundtable Knight
Posts: 243
Joined: Mon Jan 09, 2006 7:45 am

Post by rabidric » Thu Oct 20, 2011 3:33 am

DON'T have clients, if it is in any way avoidable...lol.

Post Reply