Random Trading Is Evil

by robbooker on October 7, 2011

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We’ve all done it. We are all guilty.

  • Oh, I was just trying out this new trading thing in my account.
  • I wanted to see what would happen if price bounced off this trendline.
  • I decided today I want to just trade with the trend.
  • The GBP/JPY has a bigger daily range, so I wanted to trade that today.
    1. One day it’s support and resistance. The next day it’s trading signals from some random web site. The next day it’s a new book you got from Amazon about Fib retracements. The next day after that it’s Jim Cramer, and then it’s news trading, and then it’s a new currency pair that you heard “works best for trend trading,” and then it’s just so confusing that you sit in front of your computer and it looks like this:

      Sure, this might make sense to one guy...

      At some point we end up with too many trading systems. Too many ideas. No confidence. No direction. Something different every day. An endless loop of learning new stuff but never making any money. A road with no destination. Trader Hell.

      It’s pure evil.

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    • Foo

      Do you not feel responsible for a lot of that randomness? You have switched from trading approach to trading approach over years. You only trade one strategy yet you trade all strategies. I’m very confused by your message. What you wrote above is true yet what you do is false.

    • Anonymous

      Dear Anonymous

      Random switching is when you switch because it’s fun or exciting.

      Switching because you spent 6 months building a better system is one way to make money even as market conditions change.

      Have I made mistakes? Yes. Have I switched systems like an idiot in my trading career? Yes. Have I spent a lot of time trying to help people get focused? Yes.

      I never claimed I was perfect or never make mistakes. I never even claimed I wasn’t “part of the problem.”

      Next time leave some advice that’s helpful to others rather than trying to prove I’m imperfect (that’s way too easy).

      - Rob

    • Kenneth

      I bought Bossilator and start to learn it, now comes Jennifer with Combo system, its hard to stay on track, But I do my best to stay with Bossilator even though I found Combo interesting also.

    • Mike Mada

      Interesting – I read someplace that it’s much better to have excellent discipline and a modest system, than modest discipline and an excellent system.

      I really hear what you’re saying and what Rob said on a recent video (probably more valuable to me than the Bossilator system itself. In fact, although I bought ‘The Bossilator’ and truly believe it’s a great system, I need to trade something simpler and build my discipline effectively. Once I have that in place in my trading plan and make a success of it, I’ll add Bossilator and Jennifer’s Combo in too.

      For me, I’m going to practice and backtest my own reactions to signals through Rob’s (free) 5/13/62 and get that right first – than come back to other systems. It’s too easy to look for the newest, brightest system.

      What I’ll be saying is that I’m blaming a ‘system’ for inadequacy and not me (it’s much easier!). I’m a believer that I am responsible for my success or otherwise. In fact, I find this a harder place to be than to blame ‘the system’, ‘the market’ ‘the Greeks’ etc.

      It’s more of a challenge and I don’t yet know if I will succeed, but I do know that if I don’t take this position now, I’ll most likely always fail.

      Thanks for making me think much more about my trading.


    • jennifer

      The more you know, the better you are, but also sometimes the harder it is to stay on track. I get that! I did that too! Some trading systems are actually compatible together, at least you think they are when the trade worked out. If the trades lose, then I feel like I’m getting lost in the clutter. Right? It gets a little noisy. The most important thing to do is identify what the plan is, and identify what your trade criteria is, so when you see other tools or hear other traders taking about something interesting, you still know what your trading plan is. There must be a fine line between educating yourself as a trader and cluttering you trading tool box.

    • Christian Alnes

      Oh.. the story of my (trading) life!
      Now I try to focus on 4, and only 4, systems; 2 for scalping, one for trending and one for counter trending. Its far to easy to get sidetracked with all the buzz the Internet brings!
      Shame on you babypips, Jenni, Rob, Ragee, Kat and Boris for posting so much great stuff! =)

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