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Discussion in 'Beginner's Lounge' started by Skate, Dec 17, 2018.

sentifi.com

Aussie Stock Forum Sentifi Top themes and market attention on:

  1. Skate

    Skate

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    Hi @Xendragon welcome to our community.

    Education is the key.
    “As the saying goes, if what you learn leads to knowledge, you become a fool; but if what you learn leads to action, you can become wealthy”

    New to Trading
    @Xendragon if you are new to trading a good place for you to start is to read this thread - It will be exhausting but most certainly be worth the effort

    Before you listen to a podcast I’m suggesting you watch two short videos (each are only 6 & 7 minutes in duration)

    1. The first video is a window into behavioural science & the 7 minute video revolves around a simple question - Would You Take This Bet ?



    2. The 2nd Video is a great song by Ed Seykota who is a world class Trend Trader based on technical analysis & is considered the world's best trader in his field. (you will be able to code a full trading strategy from his song - which I have)



    Can you name a few good podcasts? - Yes I can..
    As your question was a little vague I've decided to hyperlink you to a series of system trading podcasts

    A heads up
    Listening to podcasts takes a high level of concentration & it takes another skill to control your mind from wandering.

    Better System Trader

    Andrew Swanscott, the founder of Better System Trader is dedicated to helping system traders of all levels improve their trading.

    Trading is hard
    Trading successfully is hard, REALLY hard, which is why the majority of people who try to make money from trading fail. You could read hundreds of books, spend thousands of dollars on seminars, watch the market for years and still not be profitable.

    http://bettersystemtrader.com/category/podcast/page/11/

    Skate.

     
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  2. jbocker

    jbocker

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    It does and I enjoy it as a major distraction when walking. I walk around a large lake 3.5kms (Mongers Lake Perth), no roads, get exercise and pass the time enjoyably. Podcasts and Walking.. perfect.
     
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  3. jbocker

    jbocker

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    That there song says (sung) it all.
    Classic. I wont get it out of my head (hopefully).
     
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  4. qldfrog

    qldfrog

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    But for the sharemarket, how many of the trades are now purely automated or influenced by non emotional reactions: eofy bonus, covering shorts etc.would be interesting to know with the rise of robot traders
    On the other end, a small change on the margin is often enough to give a trend....
     
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  5. Skate

    Skate

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    @qldfrog every price in the market is the sum of all our hopes, fear, pride and greed. Even if a system is completely automated, it was still built by emotional human beings who apply their biases to their art, whether they realize it or not.

    It’s the same with High Frequency Traders (HFT) they make waves so it our job to catch the splashes and remember, don’t get greedy.

    Skate.
     
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  6. Smurf1976

    Smurf1976

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    Understand that most people fail to apply even the most basic maths to real life situations.

    They may seek "professional" advice, a term very loosely applied, or some published study but will not attempt to themselves calculate something which is easily worked out using readily available information and simple maths that everyone in this country at least was taught at school.

    Anyone who does apply maths to common dilemmas has gained an advantage over the majority simply by availing themselves of accurate figures on which to base a decision. :2twocents
     
  7. Skate

    Skate

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    The Trading Game
    Trading is a mathematics game, a game of probabilities and not percentages.

    @Smurf1976 I would imagine most ASF members would have a high degree of literacy in applied mathematics, there are a few smart bunnies in here - lots of coders.

    A lost art
    @qldfrog & you may be interested in how Egyptians did complex mathematics. (This short 6 minute video is a must watch)



    Skate.
     
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  8. Wyatt

    Wyatt

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    Looks like Santa is only dishing out Pain and Fear to punters following the ASX this Xmas
     
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  9. tech/a

    tech/a No Ordinary Duck

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    Trading Game

    Discretionary

    To me its about Mitigated risk.
    So my numbers are skewed to diminish R
    Diminished R gives me greater Reward to Risk if profitable.
    Less loss if losing!

    Systems

    Totally different. Set of inputs returning a set of metrics
    resulting in profit provided the landscape of the Live data
    doesn't alter enough to change the results of my testing
    in the system I have adopted.

    I just buy sell and hold based upon the blueprint returned
    in design.

    Even if my discretionary skills tell me that its time to buy
    OR time to sell!

    My systems are continually on the search for changed conditions
    which render them obsolete
     
  10. Skate

    Skate

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    @tech/a thank you for posting.

    Quality posts will lift the level of this thread. I know you are skilled with both forms of trading that why your words carry value.

    I personally lack the skills to be a Discretionary trader so I'll add a few words..

    High level of skill needed

    I’m not a proponent of discretionary trading as lack those skills, but I do use a mechanical weekly trend trading strategy, a mechanical trading system, keeping me away from making any emotional decisions.

    Discretionary Investors
    Discretionary Investors buy when they think the price of the stock will increase, this can be from a multitude of different information gathered to make a buying decision and that take a high level of skill & commitment.

    Discretionary Skills
    Discretionary traders decisions are either based on a recommendation, studying the details about a company (fundamental analysis) or from the study of the stock chart (technical analysis)

    It's up to you
    Whatever combination of information you use, whether it media reports, fundamental or technical analysis or a combination of all of those it really depends on you.

    Skate.
     
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  11. qldfrog

    qldfrog

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    much appreciated your link.learning every day
     
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  12. qldfrog

    qldfrog

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    If there is one think i have learnt from tech/a, it is risk control /mitigation.
    In its simplest form, a trailing stop loss.i stiil sell too early, buy based on pure instinct etc but the basis tech/a taught me via his posts limited my losses, let some win run longer than i would have on my own.i definitively owe tech/a a drink or a coffee
    And this wisdom is still there in historical posts for any taker
     
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  13. Skate

    Skate

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    @qldfrog my views are not for everyone - some might appreciate another persons point of view, some might find the snappiness of the post entertaining, but my main hope is that new members find a wealth of knowledge & educational value here on ASF & decide to stay.

    Seasons traders will find little value in my post but they might enjoy a pep talk every now & again - pep talks never goes astray.

    Skate.
     
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  14. Skate

    Skate

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    @tech/a & @captain black were the two drivers of my trading success.

    Skate.
     
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  15. Skate

    Skate

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    Risks
    @qldfrog trading is fun, rewarding and exciting, but there are risks as @tech/a has pointed out & you are aware of.

    The more you read and learn from others the better prepared you will be.

    Skate.
     
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  16. Skate

    Skate

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    Professionals traders
    I have spoken with professionals traders and gained a broad understanding of how the big players operate, and how they move funds in and out of the market.

    Anyone can buy and sell shares, it is how we choose these shares and then how we manage our position that dictates how successful we will be.

    Skate.
     
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  17. Skate

    Skate

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    Everyone needs a plan
    I learned about the common pitfalls and hurdles people encounter whilst trading, I studied the techniques used by different investors and noticed which worked, and which didn’t.

    It’s a fair bet to say that any trend following methodology is likely to succeed over time if you follow your trading plan while handling the psychological gymnastics you will be experiencing luck will fall your way.

    Skate.
     
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  18. Skate

    Skate

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    My trading style
    My trading investments are made using technical analysis as I understood the concept and the benefits of having a robust mechanical trading system other than the fundamental aspect of trading.

    Mechanical trend trading concepts resonated with me as I had a very hard time simply buying into the proverbial “Buy and Hold” the very essence of the fundamentalists.

    Skate.
     
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  19. Skate

    Skate

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    The markets have changed
    I often hear that markets have changed and new rules are needed for the new game, well the markets do change but the underlying fundamental rules for success don’t seem to.

    Trading System
    It is my belief that to succeed in the financial markets you need to have some kind of trading system in place.

    We all make mistakes but that's ok.
    I don't claim to be an expert, far from it and I've made my fair share of mistakes along the way, but the important thing is that I have learned from my mistakes and have become a better trader.

    I don’t overtrade, I’m patient and disciplined, but I’m still learning to control my emotions.

    Skate.
     
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  20. Garpal Gumnut

    Garpal Gumnut

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    I can always pick a person who knows locks.

    I admire and will follow you.

    gg
     
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