The Intuitive Seat-of-the-Pants, Guts-and-Glory Trader
No matter what term you
apply to this type of trader, the fact is that they rarely follow any trading
system, method, or indicator for more than a few days or weeks. One day they'll
be singing the praises of triple moving averages, and then next day they'll
extol the virtues of the Elliott Wave. Let their pet system of the day or week
take a loss, and the love comes to a crashing end.
Such traders are rarely
systematic in anything, tend not to follow a plan, tend to act on an emotional
or gut level, and tend to be consistent losers in the markets. But why?
Summary
Trading systems are not the
panacea to resolving the many limiting factors that are part and parcel of
futures trading. The good news is that a trading system will give you strict
rules to follow. The bad news is that most traders will not follow their rules.
And finally, there can be more bad news if the system you are using has been
overly optimized.
Category: Methods of Daytrading
|
