Google+
Trading What You See, Not What Think, Really?
By Dr. Andrew Menaker   
March 20, 2012

What are you analyzing? How do you make your trading decisions? I'm sure some of you will say, 'I don't think, I just trade what I see...or you think that's what you're supposed to do.

How’s it working out for you? The reason I ask is that if you are a discretionary trader it means you are using your judgment to make a decision, not relying on a system to tell you what to do. Oh, but wait, aren’t we supposed to have rules or criteria that tell us what to do? Ah, the dilemma that discretionary traders face.

Are you a discretionary trader or are you trading an automated system?

We’ve all heard this old adage many times, ‘Trade what you see, not what you think’. But is it good advice? Is it practical advice for a discretionary trader?

It might be good advice if it was possible to act as a robot! Admittedly, I’ve probably uttered this line in the past myself, it's such an easy out, but it's not very accurate.

We are not robots. Yes, there are times when you are relatively unencumbered by your ‘issues’ and you trade well, but most of the time for most traders our brain is doing a lot of thinking….and worrying…..and……fantasizing. And what many people don’t realize is that thinking is inextricably tied in with emotions. And emotions can trump will power. So, if you’ve been trying to change how you think or control or thoughts or improve your willpower but you’re not seeing much progress, I highly recommend you learn to work with emotions as well.

To learn more from Andrew, be sure to register for his blog updates at AndrewMenaker.com.

 

Free E-Newsletter

Stay in touch with the latest news on free events and market updates from industry experts!



Banner
Banner
This website is for educational and informational purposes only and should not be considered a solicitation to buy or sell a futures contract or make any other type of investment decision. The companies and services listed on this website are not to be considered a recommendation and it is the reader's responsibility to evaluate any product, service, or company. NinjaTrader Ecosystem LLC is not responsible for the accuracy or content of any product, service or company linked to on this website.

Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. View Full Risk Disclosure.

CFTC Rules 4.41 - Hypothetical or Simulated performance results have certain limitations, unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.

Readers agree to Trader Kingdom’s Disclaimer, Terms of Use and Privacy Policy. Offers and events from 3rd party vendors are provided for convenience only. Trader Kingdom is not responsible for the content of a 3rd party website or their services.