There really isn't that many different ways of approaching trading correctly, but there are an infinite number of ways to trade incorrectly. Unfortunately, higher visibility is a user level factor, and the acquisition of information and adoption of that information transfers almost instantaneously when it is readily available, versus when one has to seek it out and perception of adoption is non-existent.

Obviously, there are many more failed traders than successful traders, so there is a very high probability, that there is a commensurate amount of bad advice and faulty knowledge available to aspiring newbie traders. In other words, what-they-see-is what-they-get. The stuff that really works takes time and is hard work to uncover. That is, the methodological wrapper for inductively organizing the information gathered is accomplished through quasi-experimentation.

The other problem is, people believe what they want to believe, see what they want to see, and hear what they want to hear. They tend to avoid information that contradicts what they already think or believe, and tend to seek out other like-minded people. It’s the guiding force behind organized religion, the political system, cults, and yes...forums.

Researchers found that people are about twice as likely to select information that supports their own point of view (67 percent) as to consider an opposing idea (33 percent) and 3 times as reluctant to consider differing perspective when it pertains to politics and religion. One could only imagine what the percentage is when it comes to money and trading -probably 95-99%, huh? I've seen this phenomenon repeat itself ad infinitum on this forum. Big Mike and other experienced traders will dole out advice, and it is summarily ignored or even refuted, by aspiring traders with little experience.

It is not only easy to get sidetracked, spun around, and derailed by the markets, but one can also be misled if the information they are receiving is apocryphal. Everyone wants to make money, but with respect to what? Everyone one wants to wrestle the gorilla, until the door opens. So, instead of making rational decisions based on objective observation, they make emotional decisions that make them feel safe and comfortable. They develop a compulsive addiction to this stimulus-response loop which reduces them to instant-gratification junkies. They may have a seemingly effective methodology that generates profitable trades, but in the end, they never get ahead because they end giving it all back in the rake and grind. They either choose the markets-they-trade and the strategies-they-use randomly, or once again, make the decision based on comfort.

The result is that 80% of the ideas that are freely exchanged on this site are invalid. They are misguided, anachronistic, simplistic, irrelevant and often just plain wrong. The dilemma is, how does one separate the wheat from the chaff. Logic would dictate, and it is confirmed from my personal experience, that the best place to seek knowledge is from someone who is extremely knowledgeable and experienced. So for starters, i would question the quality of the sources of the advice you are seeking, and look to those individuals who are proven and have successfully accomplished what you seek to achieve.

Rational traders incorporate risk into the determination of their expectation, because their approach is reason-based, rather than driven by emotion. They are able to build positions, add to their positions, and follow the move-to-the-end. They focus on getting bigger, and size their trades to get the maximum compounded growth of their capital relative to the amount of risk they are willing to incur, and they trade the markets and use the strategies that allows them to accomplish these goals. They realize and accept that markets vary from day-to-day and even intra-day, and that it is unwise to trade the market the same way, on days that aren't alike.

Forums can be beneficial and I would certainly argue that more education is preferable to less, provided the education doesn't impede someone's ability to reason things through for themselves. And provided the knowledge that is imparted is accurate and doesn’t mislead it’s readers.. In order to effectively convey ideas to others, you must amend their perspective and their point of reference, so that they may see it anew, and from an entry point that they will understand. To spare them the inevitable beatings of otherwise learning it the hard way is not often appreciated until its too late.

I realize this is very theoretical sounding and not very practical in nature, but it is not without its reason. Learn to think critically (& on your own) and don't be a follower. The way you choose to learn and acquire expertise in trading is as important as the actual process. So, give it careful thought and approach it logically - develop a plan to learn and then execute the plan. Forget about popular opinion and don't take anything at face value. Organize and filter your ideas and determine what is relevant, but allow conflicting ideas to generate new conclusions. Keep in mind, that in theory, there is no difference between theory and practice, but in practice there is.

I could read your responses all day long. You are a true master with in-depth understanding of the market, trader mentality / psychology and behaviour. You know and understand our strengths and weaknesses, the root cause of our possible successes and imminent failures. You have made my decision to joining futures.io a benefit and a privilege. Thank you for sharing your knowledge, true knowledge and wisdom of the ins and outs of this magnificent game. I truly appreciate your contribution. Just reading your posts are bound to make me a better trader. I promise you that. You are a true master.

@snax..

What I understood from tigertrader's post is that I'm in no position to hand out advice because I'm inexperienced, and the advice I gave most likely isn't advice that would help you to profitability. What stood out the most to me was:

"The stuff that really works takes time and is hard work to uncover. That is, the methodological wrapper for inductively organizing the information gathered is accomplished through quasi-experimentation."

and

"Rational traders incorporate risk into the determination of their expectation, because their approach is reason-based, rather than driven by emotion. They are able to build positions, add to their positions, and follow the move-to-the-end. They focus on getting bigger, and size their trades to get the maximum compounded growth of their capital relative to the amount of risk they are willing to incur, and they trade the markets and use the strategies that allows them to accomplish these goals. They realize and accept that markets vary from day-to-day and even intra-day, and that it is unwise to trade the market the same way, on days that aren't alike."

I still have a ways to go. I think this post is enough to stop me from trying to help others, because trading is a very independent process. I suppose what I'm really trying to say is: take what I said with a grain of salt, if you hadn't already.

I always strive to be the dumbest person in the room (which isn't that difficult for me). If I was the smartest, I would never learn anything new, or of value.

Your humility is infectious

Hi Sun Trader
I heard you were in Belize
How did the boat run?
regards
bobc

an old piece I wrote on humility...

I was waxing nostalgic when I was reminded of one of my mentor's favorite precepts…

Not that it was anyone's business, and not that anyone really cared, but after the trading day was over, one was often asked matter-of-factly, "So how'd you do today?" Even back-in-the day (on the floor of all places) traders doled out socially accepted responses to this very probing question. These responses were realistically based on a hierarchical assessment of one's intra-day p&l.

Ranging from bad to worse, were the losing days…

- they got me
- got killed
- at least I got my health

Ranging from good to better, were the winning days

- not a bad day
- got 'em
- had a nice week today

A gentleman never kisses and tells; and a trader does not provide full disclosure about his performance; the trader should instead exhibit humility. For those on the left, humility may be seen as political correctness by a different name, while those on the right may see it as a way of stifling free expression. However, like a poker player without a tell, one should never be able to discern if a trader had a good day or a bad one. A trader shouldn't whine, or proffer excuses on bad days; and there should be neither bragging, nor hubris tendered on the good ones.

Trading makes strange bedfellows. Individuals from disparate backgrounds with varying opinions, beliefs, and philosophies are brought together by their passion for profit. But, what should also unite them is a shared belief that humility is not only there to protect them, but is a kind of moral compass that should always remain a virtue.

My go-to indicator to look for alignment in the trend is the good old reliable MACD. However, I change the setting to 8/13/3. I use one-minute, three-minute and five-minute charts and simply watch. When they line up and are coordinated (all tending to point up, or tending to point down), I check the one minute for my entry. A 20 EMA or VWAP is also on my charts. I make sure market structure is in my favor as well and trend trade according to the structure. I use a couple of neurostreet indicators. These are great as well, but the MACD is a hangover from my previous approach but it works so well I've hung on to using it -- like a security blanket for my trades.