Today I wanted to talk about my views on trading chatrooms, forums and groups. I personally believe they are the most discouraging places for a trader to participate in. In any of them that I have participated I have always been the most correct person with my calls. But people ignore when I am right and just focus on the times I am wrong. I usually get banned from them and everyone accusing me of sucking. The herd mentality is so obvious. Well look, 90% of traders lose. The losers tend to cluster onto groups, chatrooms and forums. So the rate of losers in them is even higher.
On another note, I have decided to quit discretionary trading. I know this is a big decision as I learned trading through discretionary trading. My Dukascopy contest results are completely based on discretionary trading. But now I have systematic methods that are much much more stable than discretionary trading. I may go back to discretionary trading someday in the future. I’ll admit I love it. But I just can’t handle the volatility in returns going from month to month. One month I’m up 4000 pips the next month down 4000 pips. I’m going through wild profits and wild drawdown months recently. My systems are more like a stable 500 pips a month. Also with systematic trading I just have to trade a few minutes a day if it is off dailies. Recently I have had some frustrating experiences with discretionary trading. The market has been behaving very odd. It just is no longer worth it to continue discretionary trading for now. I will admit there is a catch that discretionary trading can allow really massive profits and large executable size. It’s only worth discretionary trading if you have a pool of $100B+ and use 5:1 leverage cap. Something which I don’t have now.
From now on I am going to test new systems on my Dukascopy contest account to just get a stable 30% per month. Nothing fancy anymore. I’m looking at maintaing my outlier status in PnL and Pip points on the Dukascopy contest. Not looking to win the contest at all.