Post
Topic
Board Speculation
Re: Goomboo's Journal
by
Goomboo
on 02/08/2013, 23:00:46 UTC
The point of this thread isn't a specific combination and timeframe - the point is to learn the tools and techniques to be self-sufficient.

The point of this thread isn't to say that a specific combination of indicators is profitable - it's to teach you what needs to be done so that you can become profitable.  Please note the subtly of that previous sentence.  Successful trading isn't found in a particular method.  It's found in the consistency, confidence, and discipline to backtest and act on what you know to be true.

I'll use myself as an example - I knew that moving averages backtested profitably years before I actually started earning a profit in my account.  I became a successful trader when I learned how to persevere during periods of difficulty.  Over the past 3 months, I have only won 22% of all trades which I have attempted.  In fact, I am currently in the midst of an 11 trade losing streak - I have lost the last 11 trades I have attempted.  When I was a young trader, these difficult markets devastated me.  I was unable to continue executing the next trade because I couldn't take the pain of being wrong and losing money again and again and again.  However, through time I have learned to focus on acting out what I know to be true and letting the results take care of themselves. 

It is very important to note that since I have confidence in my method, I took two trades in the midst of a string of losses that I am still holding which are propelling my account towards new highs.  So at the end of this quarter, I'll probably have only won 20-30% of my trades but ended up profitable due to the determination to act out what I have tested extensively.  The secret?  I cut my losses and let my profits ride.  Each of my losers were cut within hours or minutes while my winners have been held for several weeks.  It really is just a numbers game, but you have to have discipline to play it well.