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Retail Trading As An Industry

  #1 (permalink)
 
processing's Avatar
 processing 
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Hey everyone,

So I was doing some thinking about trading as a retail trader, and what many books and almost all of trading courses teach.

It seems there is a highly emphasised mantra that is constantly spoken: “Trading is 90% mindset."

It really got me thinking. And even feeling a little resentful, if I'm to be completely honest.

It feels like it is implying "the course strategies all work" and "if you don't profit consistently" and "if you don't make money" or "[insert another phrase here]" it is always due to the trader's mindset. "It is the trader's fault." Meaning it is never the broker's fault. Or the fact that some strategies aren't meant to work in all markets.

It almost feels as though there is a disclaimer that trading teachers say: "If you take my course and you don't succeed, it's not my fault, just try harder, because it's your mindset that is the issue."

It's like an endless rabbit role that one can go down and never really return from. Thus it creates this endless purchasing of courses and books to "fix" the mindset.

It can lead to someone thinking “I just need to buy the next book, and hope it solves my mindset issue.” Or “this course will solve all my mindset problems.”

I just wanted to share my thoughts on this.

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  #2 (permalink)
 
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 DowDaddy 
Las Vegas
 
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processing View Post
Hey everyone,



So I was doing some thinking about trading as a retail trader, and what many books and almost all of trading courses teach.



It seems there is a highly emphasised mantra that is constantly spoken: “Trading is 90% mindset."



It really got me thinking. And even feeling a little resentful, if I'm to be completely honest.



It feels like it is implying "the course strategies all work" and "if you don't profit consistently" and "if you don't make money" or "[insert another phrase here]" it is always due to the trader's mindset. "It is the trader's fault." Meaning it is never the broker's fault. Or the fact that some strategies aren't meant to work in all markets.



It almost feels as though there is a disclaimer that trading teachers say: "If you take my course and you don't succeed, it's not my fault, just try harder, because it's your mindset that is the issue."



It's like an endless rabbit role that one can go down and never really return from. Thus it creates this endless purchasing of courses and books to "fix" the mindset.



It can lead to someone thinking “I just need to buy the next book, and hope it solves my mindset issue.” Or “this course will solve all my mindset problems.”



I just wanted to share my thoughts on this.

Perfectly said!

If you don't bet, you can't win.

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  #3 (permalink)
 
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 wldman 
Chicago Illinois USA
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As a former pro in multiple venues I could do a daily post on just this. If there is interest or if a Q&A on this would be beneficial, let me know. I have many things that I am certain about and quite a few well supported theories on the industry, regulation, and retail.

-Dan

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  #4 (permalink)
 
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 bobwest 
Western Florida
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wldman View Post
As a former pro in multiple venues I could do a daily post on just this. If there is interest or if a Q&A on this would be beneficial, let me know. I have many things that I am certain about and quite a few well supported theories on the industry, regulation, and retail.

-Dan

Yes, please.

A professional perspective will be highly valuable.

Bob.

When one door closes, another opens.
-- Cervantes, Don Quixote
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  #5 (permalink)
 
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 deaddog 
Prince George BC Canada
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wldman View Post
As a former pro in multiple venues I could do a daily post on just this. If there is interest or if a Q&A on this would be beneficial, let me know. I have many things that I am certain about and quite a few well supported theories on the industry, regulation, and retail.

-Dan

Please do!!
Be nice to get a pro's perspective.

"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
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  #6 (permalink)
 
deaddog's Avatar
 deaddog 
Prince George BC Canada
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processing View Post
It feels like it is implying "the course strategies all work" and "if you don't profit consistently" and "if you don't make money" or "[insert another phrase here]" it is always due to the trader's mindset. "It is the trader's fault." Meaning it is never the broker's fault. Or the fact that some strategies aren't meant to work in all markets.

It almost feels as though there is a disclaimer that trading teachers say: "If you take my course and you don't succeed, it's not my fault, just try harder, because it's your mindset that is the issue."

Firstly I doubt that any fault can be the broker. They don't make the buy and sell decisions.

Secondly I agree that for the most part trader failure is the traders fault. I recommend that those starting in this business take the time to study why traders fail. Then avoid doing any of those things.

Can you give us an example of any strategy you have followed exactly that didn't work for you.

"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
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  #7 (permalink)
 
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 processing 
Sydney, NSW
 
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deaddog View Post
Firstly I doubt that any fault can be the broker. They don't make the buy and sell decisions.

Secondly I agree that for the most part trader failure is the traders fault. I recommend that those starting in this business take the time to study why traders fail. Then avoid doing any of those things.

Can you give us an examples of any strategy you have followed exactly that didn't work for you.

I think can of some examples which, if adhered to, would hinder performance:
- the moving average crossover strategy. Buy when fast moving MA crosses over slow moving MA.
- pin bar and other 1-4 bar candlestick patterns
- trading only on higher timeframes (daily, weekly, monthly) and never trading off minute charts (1 min, 3 min, 5 min, 15 min)
- aiming for higher reward, when only wanting to risk very little (risking 1R and aiming 3R or 4R)

There are probably more that I haven't mentioned, it is around 5:48am so my thinking brain has not fully woken up yet.

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  #8 (permalink)
 
processing's Avatar
 processing 
Sydney, NSW
 
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wldman View Post
As a former pro in multiple venues I could do a daily post on just this. If there is interest or if a Q&A on this would be beneficial, let me know. I have many things that I am certain about and quite a few well supported theories on the industry, regulation, and retail.

-Dan

i would LOVE if you would share your knowledge on the industry! Please do keep us posted.

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  #9 (permalink)
 
deaddog's Avatar
 deaddog 
Prince George BC Canada
Legendary Market Wizard
 
Experience: Advanced
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processing View Post
I think can of some examples which, if adhered to, would hinder performance:
- the moving average crossover strategy. Buy when fast moving MA crosses over slow moving MA.
- pin bar
- trading only on higher timeframes (daily, weekly, monthly) and never trading off minute charts (1 min, 3 min, 5 min, 15 min)
- aiming for higher reward, when only wanting to risk very little (risking 1R and aiming 3R or 4R)

There are probably more that I haven't mentioned, it is around 5:48am so my thinking brain has not fully woken up yet.

I'll give you time to wake up.
My time zone opens the US/ Canadian markets at 6:30 am so I know the feeling.
I trade equities, so that is what I'm referring to.
I only trade on higher time frames, Daily charts.
I prefer risking a little to make a lot. You only need a few good trades that run hard to offset many small losses.

"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
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  #10 (permalink)
 
processing's Avatar
 processing 
Sydney, NSW
 
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deaddog View Post
I'll give you time to wake up.
My time zone opens the US/ Canadian markets at 6:30 am so I know the feeling.
I trade equities, so that is what I'm referring to.
I only trade on higher time frames, Daily charts.
I prefer risking a little to make a lot. You only need a few good trades that run hard to offset many small losses.

Thanks.

Equities are suitable for holding for longer timeframes and they are probably the most forgiving instrument.

How long do you typically hold each trade for?

If you hold for at least a few months or more than a year, and only go long, that is considered investing, or position trading.

It's not really "trading" as such. Most people will think of trading as making at least a few trades each day, and holding up to 1-2 weeks.

Do you use leverage? This is something that can make or break your account.

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