Thursday, September 1, 2011

NEWTON LINCHEN ON INDEPENDENT TRADER

Dear Professor,

NamastĂȘ!

It has been occurring some improvements to this issue: I only day trade now patterns I had worked with comprehensive statistics.

This means a lot in terms of reducing overtrading and the emotional factor of trading.

Notice that when you analyse trade by trade, you're "right" or "wrong", depending whether the trade works out or not. That kills traders, for we misinterpret random events with a "failure" of our judgment skills... When you only trade with statistical setups, you don't feel bad anymore about losing trades (you're acquainted now with the histogram of the distribution of the series of trades - losses and gains), and you also don't feel exhilarated when the trade is a win, because, remember, it was not the fruit of your recent workout in analysis or judgment. It was the result of the distribution of the series of trades, according to the statistical pattern.

In other terms, when the statistical trades works well, it's just normal. When it produces a loss, it's not your fault.

: )

1 comment:

trader said...

NamastĂȘ!

Dear Professor,

I'm please to inform that my first book saw light last week: http://www.novatec.com.br/livros/lucrandotubaroes/

Best Regards from Brazil!

Newton Paulo Linchen.

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