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The Turtle Trading experiment
-- the most amazing and human performance psychology and systems trading
experiment of our century, in my opinion, has revealed many secrets to
successfully trade the markets.
Most people think the secrets
of the Turtle traders success came from the trading system. And I tell you
here today that, although the trading system is pretty good, success came
from other factors that many people miss trading.
According to Russell Sands
turned trading system lost 60% of the time! If You think about it that's
pretty crazy. and at the time turtle traders were executing the system
manually. So, if you have any trading experience, can you imagine losing
60% of time on purpose? (Well, now I understand that most traders are used
to losing 90% of the time but that's not on purpose!)
One of the secrets was an
understanding that one needs a trading system that will net profit out
over time. Winning and losing is it necessarily the issue. Net profit is
everything. And only those who have a business mindset when it comes to
trading can recognize this. Or even many who have professional gambling
experience or know professional gamblers can understand the statistical
concept.
Most inexperienced traders
think accuracy and high winning percentage is the way to go, over
everything else. This is usually because inexperienced traders versus
losing an account that he painted losing so much that they just want to
find winning whatever way they can. Well after inexperienced traders
through that phase they realized that to waste time going for high winning
percentage and you don't make any money!!
The bottom line to trading and
the bottom line for any business to make money. If your business is not
produce a profit is not going to last long who wants to extend massive
amounts of effort, worry and concentration over something that doesn't
produce any results?
So the key here is to find a
method of training that will net out profits over time just like the
turtle traders did. The rest from there comes down to mathematical money
management and a steady execution of the trades, of all trades!
And once you've thoroughly
tested that your system, in honesty not in hallucinated hope, and you know
you know the system will then out profit over time because the system is
based on fundamentals of natural price movement then you simply need to
execute that system. You'll need paper trade assist them for a while and
increase your belief in it. Then trade with extra small position sizes
eventually graduating up to larger fractional percentage position sizes
that will keep you out the proper risks to reward ratios and compound your
gains in the right way.
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