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How to deal with doubting the trading strategy and switching between systems?
เป็นสมาชิกตั้งแต่ Mar 18, 2022
48 โพสต์
Jun 26, 2022 at 05:52
เป็นสมาชิกตั้งแต่ Mar 18, 2022
48 โพสต์
“After a series of losses, doubt in the strategy appears and I change to another one. After which, the situation repeats again. And so on and so forth.”
Losses cause discouragement and the search for another “reliable” trading system. But there is no such system :) There is no situation of certainty in the market. We enter the market and everything is in the hands of the market. We cannot change that. Trading is about managing uncertainty, managing risk. The system doesn’t take care of that, you’re always putting your money at risk, you never know what’s going to be on the chart in a moment.
“You will learn to make money in a weekend”
Slogans like “you will learn to make money in a weekend” are marketing to bring you into the market and take your money.
What you can do is to prepare yourself very well for trading: analysis before the signal, knowing what the signal looks like, SL+TP (always must be there!), position management, exit.
A good rule is that if the market does not meet your assumptions (expected scenario) you close your trade. If something is wrong, there is no point in waiting “maybe it will still go up”. It is bad for your psyche, you close the trade and wait for the next signal. You must have very clear rules of management and exit. Anyone can open a trade! Even a cat (you know cats, they mastered all keyboard shortcuts!)
You need to know what to do when certain situations happen on the market (or not), you need to know exactly when to exit.
The more time you spend training your system, the faster you will get to profitability. Invest in the best thing you can afford. Know that you will probably go through several systems before you find the one that works for you.
The best traders even have several systems, they shift between depending on “what the market is like” and what works best for them.
Losses cause discouragement and the search for another “reliable” trading system. But there is no such system :) There is no situation of certainty in the market. We enter the market and everything is in the hands of the market. We cannot change that. Trading is about managing uncertainty, managing risk. The system doesn’t take care of that, you’re always putting your money at risk, you never know what’s going to be on the chart in a moment.
“You will learn to make money in a weekend”
Slogans like “you will learn to make money in a weekend” are marketing to bring you into the market and take your money.
What you can do is to prepare yourself very well for trading: analysis before the signal, knowing what the signal looks like, SL+TP (always must be there!), position management, exit.
A good rule is that if the market does not meet your assumptions (expected scenario) you close your trade. If something is wrong, there is no point in waiting “maybe it will still go up”. It is bad for your psyche, you close the trade and wait for the next signal. You must have very clear rules of management and exit. Anyone can open a trade! Even a cat (you know cats, they mastered all keyboard shortcuts!)
You need to know what to do when certain situations happen on the market (or not), you need to know exactly when to exit.
The more time you spend training your system, the faster you will get to profitability. Invest in the best thing you can afford. Know that you will probably go through several systems before you find the one that works for you.
The best traders even have several systems, they shift between depending on “what the market is like” and what works best for them.
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