Traders' Roundtable

Interesting quiz. If I took the quiz at certain milestones in my trading years the result would vary.

It would be low on N in my first year trading with zero experience but made tons of profit. Ignorance was bliss! It would be high on N when the stock market bubble ended and still trading with no ...

Yep, most major currencies jumped through the roof this morning :shock:

I read someone said, maybe Seykota, that the choice of your system parameters (or perhaps even the choice of the system itself) is a manifestation of your psychological make up. So, maybe it's more like 100% psychological ...

There is AA (Alcoholics Anonymous). Then, there is TA, nope not technical analysis, Traders Anonymous Isn't the tribe sort of like a TA?

Been there done that. I told myself that emotion is like muscle. It needs good conditioning and practice. If I emotionally couldn't do certain thing that should have been done it usually meant that I was not ready. At least intellectually we know what should be done, so it is a good thing. What else ...

Let's look at it using signal vs noise concept. If the system gives the opposite direction of a signal that actually goes the other way, then, yes, perhaps you can just reverse what you do and improve the result. But if the system gives a signal when it is actually just a noise, then no matter what ...

Could you elaborate on this? Wouldn't any exit have a positive expectancy provided it was not at a loss or isn't a scratch?

Expectancy gives you an idea how much money you can expect your trade to make on the average per every dollar risked. You can use your past trade results (sample size) to ...

Great topic. I used to work very hard to search for an "optimal" exit strategy which seemed to become a never ending quest. For now I settle with the idea that anything is fine as long as it gives me a positive expectancy.

So, my exit is "discretionary" in a sense that I sometimes get out at ...

I am sure we all have read that in some ways, trading is similar to sports. For example with tennis, squash, golf, or whatever sports or game we choose to play and master, we need to spend an infinite amount of court time to practice and practice... and practice. There is no way around it. Same with ...