How do you become a winning trader then

[LeTiss]

I've seen a lot so traders burst onto the scene, but lose their edge very quickly.

Trading and keeping an edge is a continuous process.

It is indeed
In 2017/18 I lost my edge and my motivation too. I needed to change or leave

Things are good again, but no doubt I'll need to tinker what I do before long
This is an ongoing journey, and you need to adapt along the way

[Crumpets]

I bet the footy too. It's a sport I know inside out, and my 'method' is so simple. Still building up a big enough sample size though...

A glaring mistake I made over the past several months was to kick the footy onto the backburner; excuse the pun. I thought it doesn't really require much more work, so I'll just hammer the nags from now on..
Now I regret not just building up that sample size!!!

In fact I'm sure there is somebody on these forums who keeps going on about sticking to what you know....if only I could remember his name..

[Crumpets]

Another problem I have seems to be the battle between analysis and flexibility.

It seems the more I analyse/prepare for an entry, the more I become 'tied' to that move. If my supporting horses start to 'misbehave', I justify keeping my position because ''I'm not in the red yet'', and more importantly, ''because I have done the work and this is the conclusion I drew''

This is a terrible approach, given how fickle and fast moving the markets typically are.
Stubborness is a killer for your bank!

Yet if I float in and out of the markets, I find I have the flexibility and objectivity to scarper on the bad ones. But my opening positions leave a lot to be desired...

This is why an ability to 'read' the markets is in my opinion a key goal, but to do that without becoming attached to your own conclusions...well I think that's one a heck of a powerful combination.

[Derek27]

It seems the more I analyse/prepare for an entry, the more I become 'tied' to that move. If my supporting horses start to 'misbehave', I justify keeping my position because ''I'm not in the red yet'', and more importantly, ''because I have done the work and this is the conclusion I drew''

I can't remember his name but I heard a trader refer to that problem as "falling in love with a trade". Spending too much time or overthinking a particular trade can leave you psychologically attached to it and prevent you from looking elsewhere.

[ShaunWhite]

I'd have thought mechanical edges come and go.

It's the mechanical edges (aka market microstructure stuff) that endure, I haven't altered mine in any meaningful way for years.

[Crumpets]

I think I understand what you're saying Shaun (my p/l begs to differ). I'm very new to trading, so my terminology is probably off!



Cutting a position because it will likely lose you money/more money is logical and understood by most. Though it's much easier said than done! But I think the prospect of cutting a trade so you can refresh your brain and look for other opportunities is underrated.
I suspect the best traders are able to cut positions, not necessarily because they are inherently 'bad' positions to hold in that moment, but because concentrating on it and not something else is detrimental to their end result. I guess it's an ability to always be on the lookout for something better. To just nonchalantly jump from trade to trade.

[LeTiss]

Big difference for me has been embracing automation
As someone who has always been a manual trader, this was a hurdle to overcome. Automation somehow felt like cheating, or that I wasn't a proper trader

Unfortuntately, the fill rate has slowed so much, I found pre-event sport trading became boring
Boredom and trading is a deadly combination

I also traditionally hated horse racing trading. I hate horse racing, I find it incredibly boring. I have zero interest in it, so I found trading on it tough, as I was easy to bully around due to my lack of confidence on the sport

However, automation has nullified that. It means my little bot can happily have a play, whilst I'm left to study the football markets

That would have been unthinkable 5 yerars ago

[ShaunWhite]

This is why an ability to 'read' the markets is in my opinion a key goal, but to do that without becoming attached to your own conclusions...well I think that's one a heck of a powerful combination.

Reading the market is the ability to arrive at a new (or the same) conclusion every x seconds or minutes, in that regard there's nothing to be attached to and the danger if anything is too many changes. Hanging on to a prior decision is reading the market once and then shutting your eyes and hoping.

But its just part of learning to think in the moment, first you need to learn that a loss 10mins ago means nothing, then the timeframe compresses so that 10 seconds ago means nothing. Try setting your stakes to £2 and hiding your PL column, it'll stop you looking at that red or green number that's just the ghost of your old decisions you.

[elofan0]

interesting video .. how to trade or not to trade

https://www.youtube.com/watch?v=s-IYdIQqHnw

Also, on some of his other videos he covers a lot of ground and presents the subject well.

yeah he does do a great job of clarity i think its all about tweaking a system working out were its failing fox

[Kai]

interesting video .. how to trade or not to trade

https://www.youtube.com/watch?v=s-IYdIQqHnw

Also, on some of his other videos he covers a lot of ground and presents the subject well.

yeah he does do a great job of clarity i think its all about tweaking a system working out were its failing fox

Well he certainly seemed to crack the Youtube algo for this year, afaik it's an evolving thing similar to the markets. Seen the lad before even if I don't actively look for these types of videos, they somehow appear on my YT suggestions, or people link me because it shows up on theirs.

Hanging on to a prior decision is reading the market once and then shutting your eyes and hoping.

But its just part of learning to think in the moment, first you need to learn that a loss 10mins ago means nothing, then the timeframe compresses so that 10 seconds ago means nothing. Try setting your stakes to £2 and hiding your PL column, it'll stop you looking at that red or green number that's just the ghost of your old decisions you.

Indeed, even well prepared trading plans can fall apart quite quickly through no fault of your own, would maybe say the key overall would be to stay in control of your decision-making no matter what, not to become a slave to your overriding emotions. Easier said than done of course.

[goat68]

interesting video .. how to trade or not to trade

https://www.youtube.com/watch?v=s-IYdIQqHnw

Also, on some of his other videos he covers a lot of ground and presents the subject well.

yeah he does do a great job of clarity i think its all about tweaking a system working out were its failing fox

Listened to the first 1min and thought, what he's done all that research and doesn't know why all that money is waiting to be matched to Lay at 1.01 ??!!
Maybe it's just obvious to us lot...

[Trader Pat]

I might send him a message in the comments telling him how much I enjoyed his video and ask him if he'd consider doing one on martingale

[Euler]

Having tried to deliver good quality information via this format. I've come to the conclusion that YouTube is an entertainment medium, not an educational medium.

Some of the content you see is highly questionable, and some of the comments are naive. But that actually describes most videos there, not just ones we would be familiar with!

It sort of worries me that the next generation are growing up and being fed stuff across all social media whose main purpose is effectively to manipulate them to it's personal desire.

[Kai]

I'm very new to trading, so my terminology is probably off!

No, it sounds like you are well-read, but putting things into practice is a different beast entirely and it's where the work starts.

Much about trading is how you deal with adversity overall, how you handle losses and setbacks etc... If you take your daily P&L for an example, if it was only compiled of perfect trades and perfect market conditions then trading would be easy but the reality is different, if you've got a limited pool of strategies you've actively worked on then it won't fit that many markets to start with, so in effect the less selective you get with markets the harder you're making it for yourself, and vice versa.

[Crumpets]

Just thought I'd thank those who responded to my questions I realise I may have hijacked the thread for the past 24 hours, but I tried to keep it on topic, I guess.

Le Tiss, I currently feel the same way that you used to feel about automation. How it can feel like cheating, or not 'proper trading'. I think I will eventually follow you down that route, but for now I'm still loving the day to day. Seems like a series of puzzles to me!

Shaun I found your comments about reading the market enlightening, especially how 'reading it' is an ongoing process, not a one and done thing.
I also traded without a p/l column today: at first I felt a wee bit naked and panicky. Then I realised how much of my decision making is tied to a red or a green!! That in itself gave me a lot to think about

Euler, it amazes me how small the view counts on your videos are. But you're right. YouTube is entertainment primarily. I don't think the majority of people want anything today that is not spoon fed to them...or delivered to their door