Friday, 7 December 2012

The Holy Grail of Trading and How to Find It. Part 1

One of the reasons that most traders fail is their unending search for the so-called Holy Grail of trading, which they never actually find.

Let me say at the outset that your Holy Grail is right in front of you.

This series of posts is to present how I found my Holy Grail and how it is evolving.

Firstly, let's decide what this Holy Grail is. For me, the Holy Grail is "what I do" to be consistently profitable in my trading. I hesitate to call it a methodology or system because it's a lot more than that.

There are only three things that a market can do: Go up, go down or go sideways. That's it! Lets clarify this a bit and say: Trend up, trend down, chop sideways. As soon as I make this clarification, I have to qualify my descriptions by attaching a time frame or periodicity to the clarification.

In subsequent posts, I'll explore the way I would suggest that this elusive "grail" quest take place. Let me start by saying that there are many, many methodologies that can lead to consistent profitability. What is hard is the putting in the steps to make that methodology consistently profitable.

The answer is CONSISTENCY. I think it was Henry Ford, the auto magnate, that devised the production line so that less skilled workers could effectively carry out skilled work. Adapting the production line methodology to trading is a way of making consistent profitability a reality.

To be continued....

1 comment:

  1. Jenrique42

    I hope you had a great holiday and New Year. I start this year with more encouragement than ever to end the test and see if I get into real, even with the micro euro M6E.

    My operating today;
         - Http://, my trade of the day

    and further development

    PD. - I look very forward your trading book, which I guess the last two months we may have a good push


    Espero que hayas tenido unas buenas fiestas y principio de año. Empiezo este año con mas animos que nunca para acabar la prueba y ver si me meto en real, aunque sea con el micro del euro, M6E.

    Mi operativa de hoy;
    -, mi trade del dia

    y su posterior desarrollo

    P.D .- espero con mucha ansia tu libro de trading, que me imagino que estos dos ultimos meses le habras dado un buen empujon