INSIGHTS INTO THE MINDSET OF SUPER TRADERS – Part 2
“All predictions are about the future. And, a lot of
stuff can happen between now and then.” – Dave Landry
Name: Dirk Vandycke
Country: Belgium
Profession: Trader, lecturer and software developer
Website: Chartmill.com
Career
Dirk Vandycke has been a trader and market researcher since
the year 1995. He specializes on market dynamics, chart analysis and behavioral
finance. He’s a prolific writer (having written numerous insightful and helpful
articles about trading) and a software developer. He also teaches software
development and statistics at a Belgian University. Some of his
though-provoking articles about trading can be found at: http://chartmill.com/documentation.php?a=catPress&orderby=date&order=DESC
Insights:
- According to one
writer, illusions are something very pleasant; the only disadvantage is
that they tend to burst like a bubble. It’s only illusion that makes us
think that the secret to our success lies in trading strategies. Lies
don’t help people, otherwise the vast majority of traders wouldn’t be
losing. The truth about trading is blatant, yet that’s what can help you.
Many vendors tend to give you the impression that trading is easy. It
isn’t easy: you’ll have to work hard before you reach a stage where you
find it easier to make money.
- When you get
hold of a good strategy that has proven to be effective in the past, don’t
abandon it because of a losing streak. There’s nothing in this world that
isn’t temporary – including losing streaks. Why would you abandon a great
strategy when it’s about to experience a winning streak again? If you
abandon a good system because of a losing streak, the newly found system
will also experience a losing streak sooner or later (or right away). You
can’t find lasting success by moving from one strategy to another. You can
only find success by getting a positive expectancy system and sticking to
it. You don’t have any control over the movement of price, but you’ve
control over your risk. You should lose as little as possible during a
losing streak and maximize your gains during a winning streak. By
controlling your winners and losers, you’ll end up being victorious and
getting rewarded.
- Software can
really help in market analyses, thereby enabling us to make informed
trading decisions. The software can help us scan the markets and filter
out bogus setups, leaving us with great setups to choose from. This
doesn’t guarantee that the market will move in our favor. Nevertheless the
Golden Rule of trading will help us become triumphant. The Golden Rule has
to do with cutting losses, running profits, managing money in a prudent
way and rock-solid discipline.
- Surprisingly,
easy trading systems can generate better results when compare to intricate
systems. Intricate systems aren’t the Holy Grail, they just give more
headaches when used to analyze the market.
Conclusion:
There’s no certainty in life. Why should you expect such in the markets? If
there were certainty, then there would be no market. There’s no guarantee that
a person can’t be sick. There’s no guarantee that a person can still be alive
by next month. There’s no guarantee that a marriage can last for the next ten
years. There’s no guarantee that a person can retain her/his job for the next
ten years. There’s no guarantee that a student will get a good job immediately
upon graduation. There’s no guarantee that unforeseen times and events can’t
befall anybody, though it is OK that we keep our chin in the air. Why should we
look for guarantees in trading? The uncertainty and the unpredictability that
bring headaches, frustration and losses to some are the same factors that bring
peace of mind, emotional and financial freedom to us. The unpredictability and
uncertainty in the markets have become our friend. They’re our ally, just as
super traders have made them their ally.
This piece ends with a quote from Dirk:
“Don't focus on strategy, focus on the things we can
control: cutting losses and riding (adding to) winners!”
Source: www.tallinex.com
What Super Traders Don’t Want You To Know: Super Traders
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