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     smallworld
Member
Username: smallworld
Post Number: 723
Registered: 01-2004Rating: N/A
Votes: 0
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| | Saturday, January 05, 2008 - 10:04 pm: |  
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In these volatile times, traders and investors alike sometimes find it hard to decide on what to do with their trades and/or investments. We hear so much noise from people in or commenting on the markets. So how do we sort out the wheat from the chuffs? We need to refer back to our good trading habits, particularly this one - Separate your mind set in defining/refining your trading rules from making trading decisions.
We all aware of the doctrine of the separation of power in a Westminster system of government. The three branches of the government, the legislature, the executive and the judiciary is confined to the exercise of its own function and not allowed to encroach upon the functions of the other branches.
You can consider making trading decisions are the same as judges applying the law to the evidence put in front of him, and strict application of the law is supreme, there is no room to allow market commentaries, analysts reports unless they are admissible in the "courts of law".
When it is time to make new rules or change your existing rules, you are free to consider what you read or hear as well as what your past results tell you.
Dont mix up the two, dont do a Kevin Andrews, and interfere with the execution of your rules. You might not be aware of it. When you make trading decisions on the run, it is very much like KA making arbitrary rule, and it is bad for your financial well beings.
I am just as bad as anybody in breaking this habits, often "thinking" that I can out smart my rules, but on average, the rules are smarter than me.
I wish everybody follow his rules much better than I follow my Sat-Nav (GPS)
Rugby is just a game, it isnt a matter of life or death, it is more important than that
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qed
Member
Username: qed
Post Number: 93
Registered: 01-2006Rating: N/A
Votes: 0
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| | Saturday, January 05, 2008 - 10:47 pm: |
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Smallworld ,, fantastic ,, congrats .. ur analysing where u are .. follow ur written plan , ur written RULES .. WAIT WAIT WAIT .. it maybe tomorrow ur perfect setup .. dont trade on "I think" trade on " my signal says so " maybe I can practise what I preach ..I hope so ... cheees Q
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smallworld
Member
Username: smallworld
Post Number: 728
Registered: 01-2004Rating: N/A
Votes: 0
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| | Friday, January 11, 2008 - 12:17 am: |
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Good on ya Qed,
I had a real problem when I started out trading. I thought trading was supposed to give me freedom, and I had plenty/enough of following rules already. Besides, I didn't have any rules of my own. Now most of my rules are written in systems and I'm good 95% of the time. Every now and then, I still try to out smart my systems.
You are absolutely right, trade on signals, not what you think.
Cheers
Sw
Rugby is just a game, it isnt a matter of life or death, it is more important than that
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