Some important points to consider:
1) Gut feel without understanding leads to the trading of randomness.
2) Back testing without understanding leads to the trading of randomness.
3) Nothing substitutes for a reasoned understanding of how markets behave and a disciplined execution of trades that reflect that understanding.
4) From reading various books and blogs, I have noticed that the most successful market participants find a limited number of patterns that have favorable odds of success and repeat the trading of these often, with moderate risk placed in any trade. They win by acting as the house, not as the gambler. They win by taking consistent bets and harvesting returns from favorable odds. They don’t win by making the big bets and big scores.
1) Gut feel without understanding leads to the trading of randomness.
2) Back testing without understanding leads to the trading of randomness.
3) Nothing substitutes for a reasoned understanding of how markets behave and a disciplined execution of trades that reflect that understanding.
4) From reading various books and blogs, I have noticed that the most successful market participants find a limited number of patterns that have favorable odds of success and repeat the trading of these often, with moderate risk placed in any trade. They win by acting as the house, not as the gambler. They win by taking consistent bets and harvesting returns from favorable odds. They don’t win by making the big bets and big scores.
