|
Author: Tim Wreford Article source: http://www.askcolman.com/. Used with author's permission.
Discretionary Trading
Pure discretionary trading will rely solely on the traders judgement. For example a discretionary trader may spot a particular pattern developing on a chart and decide to enter a trade on that basis. It would be impossible to systemise their trading because it relies on subjective judgements and 'gut' feel.
Mechanical Trading
Pure mechanical trading involves the development of trading rules that cover every situation, from entry to exit and position sizing. The trader is executing a predefined plan. They must however take every trade that the system gives them which can be difficult if the trader begins to 'think' too much!
Both sets of trader are working hard at different times and at different things. The mechanical trader spends time developing a system and does not need to think whilst trading, merely executing a plan. The discretionary trader has to be thinking all the time that they are trading and can suffer from 'information overload'.
Which is best?
The answer is probably a combination of both approaches. Coming to the market with a proven strategy rather than relying on gut instinct is far less stressful and gives the trader more confidence. However the markets are always changing and one trading strategy will not work forever - i.e. the Turtle Traders. Strategies will always need updating.
Many traders will use a mechanical system to generate buy and sell signals but then use discretion, reading the market, to attempt to gain better fill prices.
All successful traders will use some sort of proven trading strategy to begin with but the level of discretion allowed by it will vary. A trader with no plan at all will fail. Tim Wreford runs Online Futures Trading, a website that provides information and resources for traders. Tim also provides a free day trading system, the results of which are updated daily on the site.
4 Keys to Unlocking Your Sales Success Potential
The "90/10 Potential Theory" suggests that we reach only 10 percent of our true potential. Use these 4 keys today to double, triple, or even quadruple your sal...
Poster, Print or Painting - Where Are You Going To Put It?
If you are redesigning or decorating a room, or house, care has to be taken where your piece of art is to be displayed. Even if you have bought a picture on imp...
Business Writing: When Not To Be Professional
It's time to write your next ad or brochure. Maybe some web content. You'd better think twice before trying to write like a "professional."
How I Submitted My Internet Marketing Articles To Only 20 Sites But Shortly 16,000 Sites Posted Them
The secret behind posting your article to only one site and then getting it listed in tens of thousands of other sites within a very short time... without any a...
Creative Offline Website Marketing Techniques
Although the vast majority of website traffic is the direct result of search engines, there are many offline marketing techniques that can be used to draw custo...
Three Ways to Add Charm and Style to Your Kitchen
I like decorating my kitchen with a cozy, warm, inviting, homey feeling to it. Usually I'm fighting for all the space I can get in my kitchen too. If you'd like...
Finding the Right Time to Refinance a Loan
If you've been thinking about refinancing a loan, you might wonder whether or not right now is the best time to do so.
10 Great Things NOT to Do with Google AdSense
There is no question that you can make some good money with Google AdSense, but you're setting yourself up for disaster if you make any of these Top 10 mistakes...
The Evolution of Video Poker
Video poker continues to evolve. Here we'll explore the latest flavors including multi-hand video poker, power poker, progressive video poker and even online po...
Eight Out of Ten Millionaires Surveyed Made their Fortune in Real Estate - How?
Millions of ordinary people own Real Estate, yet nearly all struggle on a daily basis. They have jobs and bills, what do the 8/10 millionaires surveyed do diffe...
Buying Beach Houses in New Zealand: Real Estate and Investment Opportunities
Buying a beach house in New Zealand offers many possibilities. New Zealand is made up of two main islands, North Island and South Island, giving it miles of coa...
Boost Your Emotional Marketing Potential
Why do people buy your product? Consumers--whether they realize it or not--use up to six categories of emotional criteria when they decide to purchase your prod...
Why Should I do Business With You?
It's the question that is on the minds of all our customers regardless
of what products or services we are offering. Potential customers want to know what make...
Message to Prospective Franchisees for Franchisors
Many franchise companies fail to send the proper message to their prospective franchisees. This is partly due to the over regulation and intensity of litigation...
Learn How To Start Fingering Yourself Today Starting From Scratch
If you masturbate, but you're just not succeeding in pleasuring yourself as much as you deserve to, then this could be once of the most interesting articles you...
Choose & Use the Best Colors
Are you using the best colors for your web site? Many web designers often overlook the issues of color in web design. When choosing colors for your web site th...
Tsunami Aftermath
On December 26, 2004 a massive tsunami swept through Thailand killing thousands of people, and changing the lives of thousands more. Although the Tsunami happen...
Weight Gain = Poor Quality of Life
Gaining up to 20 pounds over four years can significantly decrease quality of life, according to a study in the Dec. 8 issue of the Journal of the American Medi...
Hoodia – Its Basic Nature Part 3
Hoodia a new beginning: Hoodia Gordonii a cactus plant found thousands of miles away in the Cape Town of South Africa, has become incredibly beneficial for peo...
The Benefits of Wood Fireplace Mantels
Mantel shelves are quickly stealing the spotlight from its counterpart the fireplace. A mantel is an ideal place for your most treasured items that you want tho...
A Better Way To Work - Workplace Democracy
An essay on how Srijan is creating more 'humane' and 'loving' work environment based on principles of sharing and democracy
Who Do You Think You Are - Aladdin?: The Wishful Thinking Approach to Finding New, Ideal Clients
Is your business strategy built on wishful thinking?
Do you pray for your own special business genie?
Guidelines To A Successful Link Exchange Program
In order for a link exchange program to be beneficial, one needs to focus on building a solid exchange program correctly.
Simple Eco-Logical Steps to Lessen the Burn of the Sun
Put the sun into its rightful perspective with eco-logical tips on how to cope with the sun's heat and brightness.
|
Print this page