MoneyTec Traders Community Forum - View Single Post - The learning cycle for a newbie trader

initialsBB · 03-07-2006, 19:24

Jaymac wrote some interesting points, but I do agree with Soul-Trader that 4 months of profitable trading does not mean anything in particular. I've been trading one mechanical system for (also) 4 months and thus far it has been consistently profitable - but i don't think it's the end of the road and that i've avoided all the s***, nor i think it's an unfailable method.
For me personally backtesting was huge breakthrough and eyes opener. Before i learnt to do backtests, after several losses i thought that i was doing something wrong and that my system was bad. Backtesting showed me that you just can't avoid string of losses and that you CAN be profitable with 6 or 10 losses in a row. It had taught me also a great deal about risk/reward, money management and discipline. Backtests are a must for every trader's development.

03-07-2006, 19:24	#16
initialsBB level 2 Join Date: Oct 2005 Posts: 120 Downloads: 0 Uploads: 0 Rep Power: 3	Re: The learning cycle for a newbie trader - PART 2 Jaymac wrote some interesting points, but I do agree with Soul-Trader that 4 months of profitable trading does not mean anything in particular. I've been trading one mechanical system for (also) 4 months and thus far it has been consistently profitable - but i don't think it's the end of the road and that i've avoided all the s**, nor i think it's an unfailable method. For me personally backtesting was huge breakthrough and eyes opener. Before i learnt to do backtests, after several losses i thought that i was doing something wrong and that my system was bad. Backtesting showed me that you just can't avoid string of losses and that you CAN be profitable with 6 or 10 losses in a row. It had taught me also a great deal about risk/reward, money management and discipline. Backtests are a must for every trader's development. Last edited by initialsBB : 03-07-2006 at 19:28.*