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Trading SystemJoker Trading System : Stocks : prevnext Ride Trend Cut Losses

Many trading books assert that there is no Holy Grail, but they are wrong. There is a Holy Grail, but it is really a tin cup. Half of the great secret is that ANY trading method will work, so long as it at least half-assed gets you in in the direction of the trend. It makes no difference what it is, as long as you believe in it. The other half of the secret is that anything works only if you sadistically cut losses and greedily let profits run. So you can pick any entry method, like

  • the first bar which completely clears the prior low bar
  • the third consecutive up bar
  • price crossing the ## Simple Moving Average (sma)
  • the ## sma reversing
  • the ## sma crossing the %% sma
  • every other procyclical entry method.

All this presupposes that you know what all the elements of a trading system are and have ironclad rules for each of them.

You are working too hard trying to EARN money trading. It doesn't work that way. You STEAL it. You place a bet, and renege on it when you don't like the outcome. When you do like the outcome, you say self-righteously I WANT SOME MORE.

The worst thing you can do is analyze the market. If it's moving you just throw your money in the pile and stay poised to snatch it back out. Otherwise you just do something else, anything else, to pass the time. The market is not about THEIR psychology, it's about YOURS. Most of all, trading is not about PREDICTING, it is about REACTING