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Is Marl The Robot And Doubling Stocks The Holy Grail Of Trading?
By admin | March 11, 2008
Does Doubling Stocks have a place in the Holy Grail of trading? You know, that elusive system of specially configured rules you’ve been seeking that that will crack the markets and make you rich.
Maybe the first question should be “Is there a Holy Grail of Trading?”.
The mythical Holy Grail of trading is an often talked about metaphor in the trading world. It consists of the perfect trading system that will open up the door to riches for whoever holds the magic key. The key, of course, being the different rules and signals of the system that one imagines must govern the working of the markets.
Dr. Van Tharp, a psychologist and trading coach to the top traders, discusses the Holy Grail concept at great length in his well known book
Most people who are not succeeding in the markets believe there is some underlying order to the markets and those who are getting rich are the ones who have figured it out. So these underachieving traders continue looking for these magic signals that will betray the underlying order and in the end only continue to fail as traders.
I’m not suggesting there’s no order and that patterns don’t exist, Marl the stock robot and the Doubling Stocks newsletter clearly shows they do, but to think there is one specific way to crack the markets, to think there is only one Holy Grail is often the real downfall of beginning traders.
All successful traders have come to realize that the search for the Holy Grail of trading is an internal search. The perfect system that will make them rich is a system that is customized for them. More often than not our trading mistakes are psychology related not technically related. If the rules we’re using to trade do not feel good then we won’t likely follow them properly and will in fact likely sabotage our own success. Strange but true.
Success in the markets comes from internal control. As quoted by Dr. Van Tharp in Trade Your Way To Financial Freedom,
- Most successful market professionals achieve success by controlling risk. Controlling risk goes against our natural tendencies. Risk control requires tremendous internal control.
- Most successful traders have success rates of 35 to 50 percent. Meaning that only 35 to 50 percent of their trades are successful. They are not successful because they predict prices well. They are successful because the size of their profitable trades far exceeds the sizes of their losses. This requires tremendous control.
So the Holy Grain of trading is unique to each one of us and is not “out there” but rather “in here”. To win with the markets requires risk control which requires internal strength. It’s not always easy watching 50 percent or more trades not work out, even though when the big one comes along it more than makes up for it. This takes discipline. Master this discipline and you master risk control. Master risk control and you are on your way to finding your Holy Grail. And that is something to be proud of as most traders never find it before they bust out and those that do often spend years first looking in the wrong place before looking in the right place.
Since most successful traders have success rates no better than half (less than 50% trades are winners), and given that trading success is governed more by mastering our emotions and discipline in order to manage our trading risk, I believe to be successful we need to start with this side of trading and not worry so much about picking a stock.
Buy turning trading education upside down we start by learning money and risk management before we worry about how to pick stocks. This prevents new traders from going broke before they have a chance to learn something about the markets, and realization of the impact money and risk management has on trading success will be discovered by the trader much sooner in their career. In other words trading success will not only be safer, but ultimately will arrive much faster. You’ll find your Holy Grail much faster, and that means much cheaper!
Traders who are still searching for their Holy Grail should be advised to focus on risk management as a way to short circuit the learning curve and leave the stick picking to someone else to begin with. Only once the trader has a solid understanding of risk and money management should they venture out into the world of stock picking. It only makes sense to focus your effort where you can make the biggest impact and, counter intuitively, this is not stock picking but risk management. It is precisely this counter intuitiveness that makes it so difficult for most traders to find their Holy Grail.
The Doubling Stocks newsletter provides me with stock picks that have shown a high positive expectation which allows me to focus on money management where I can make the biggest difference to my bankroll.
To learn more about why Doubling Stocks fits into my Holy Grail of trading read my review of Marl the Stock Picking Robot and the Doubling Stock newsletter.
http://www.MrAutomate.com/DoublingStocksScam.html
Learn how to fit Doubling Stocks into your Holy Grail of trading with the free Trader’s Guide To Money Management (a.k.a. Doubling Stocks Bonus Pack).
http://www.MrAutomate.com/DoublingStocks.html
Tom Sanders
http://www.MrAutomate.com
Tom has a degree in physics with a minor in computer science and has been developing automated trading systems for nearly a decade. Tom currently trades for a living from his home on the west coast of Canada.
Tags: Doubling Stocks, Holy Grail, Marl Robot, Marl Stock Robot, penny stocks newsletter, trading stocks
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