I received another email from someone requesting my "trading system".
This begs the question, what is this blog for?
Hmmm.
The blog started as I thought it may be helpful to other traders to see some of my original business plan. (see posts from March & April).
It then morphed as I am a bit of a news junkie and thought why not compile some of the oil related news stories I see in one place for those who share the same interests.
The last reason for the blog is to show how I trade the crude oil market on a daily basis. I learned to trade by watching others, reading, reading, and reading some more.
Then after all that you lose money and start over.
The main benefit to me from the blog is the daily review of the market and the trades I took in that market.
My hope is others find this interesting, useful, and at time humorous.
What the blog is not is an attempt by me to convince you to trade exactly the way I trade.
If you do take any part of how I trade and adapt it to your own trading system that's great.
But I will stand on the theme of the repeat post below: YOU CANNOT TRADE SOMEONE ELSE'S SYSTEM.
This post was originally published April 4, 2008
How to Trade?
Many people in the "trading" business are willing to sell you their trading system. This begs the obvious question, if the system is so good why would they sell it?
Even if the system is valid the vast majority of people would not make money trading it.
Why?
Because they will inevitably deviate from the system.
Why?
You must trade your own beliefs in the market, not someone else's. This failure to follow occurs whenever there is a drawdown in someone else’s system that you are trying to trade.
Trading is money and money is emotion and when these emotions are put to the fire you will fail if you are not dealing with your own belief system. In order to stick with “the plan” in a drawdown you must believe in your plan and this belief can only come from the very core of who you are and your psychological relationship with your money at risk in the marketplace.
You must develop, design, and build your own system based on your own research. You can then build a database of trades that provide the trader a statistical basis on which they validate their trading system.
Then you try and sell it to others. :)
This begs the question, what is this blog for?
Hmmm.
The blog started as I thought it may be helpful to other traders to see some of my original business plan. (see posts from March & April).
It then morphed as I am a bit of a news junkie and thought why not compile some of the oil related news stories I see in one place for those who share the same interests.
The last reason for the blog is to show how I trade the crude oil market on a daily basis. I learned to trade by watching others, reading, reading, and reading some more.
Then after all that you lose money and start over.
The main benefit to me from the blog is the daily review of the market and the trades I took in that market.
My hope is others find this interesting, useful, and at time humorous.
What the blog is not is an attempt by me to convince you to trade exactly the way I trade.
If you do take any part of how I trade and adapt it to your own trading system that's great.
But I will stand on the theme of the repeat post below: YOU CANNOT TRADE SOMEONE ELSE'S SYSTEM.
This post was originally published April 4, 2008
How to Trade?
Many people in the "trading" business are willing to sell you their trading system. This begs the obvious question, if the system is so good why would they sell it?
Even if the system is valid the vast majority of people would not make money trading it.
Why?
Because they will inevitably deviate from the system.
Why?
You must trade your own beliefs in the market, not someone else's. This failure to follow occurs whenever there is a drawdown in someone else’s system that you are trying to trade.
Trading is money and money is emotion and when these emotions are put to the fire you will fail if you are not dealing with your own belief system. In order to stick with “the plan” in a drawdown you must believe in your plan and this belief can only come from the very core of who you are and your psychological relationship with your money at risk in the marketplace.
You must develop, design, and build your own system based on your own research. You can then build a database of trades that provide the trader a statistical basis on which they validate their trading system.
Then you try and sell it to others. :)
