Subjectivity is the bane and blessing of discretionary traders and unless you are using a system to trade you are, to some varying degree, a discretionary trader.
But let me add, at some point even the most dedicated systems trader had to have and explore discretionary ideas that eventally became systematized.
These ideas had guidelines and rules and it’s these rules and discipline that discretionary traders can learn from as they build their methodology. And yes, a discretionary trader should have a methodology; it’s the difference between having a system and being systematized. I prefer the former, which is to say that I have a system or methodology but I do not mechanize it or systematize it, rather I will execute it at my discretion when I want to* and on which pairs I want to**.
I do not want to deviate from that system – that is not what discretionary trading means.
* Using historical price movement ranges to identify the ideal trading environment and also understand the potential volatility.
** Using a watchlist comprised of predominantly symbols that have trending daily time frames or what I call “Directional Bias”
Are you swimming upstream?
Posted by Raghee Horner on February 18th, 2013 at 10:54 am, Comments: 0
SALMON HAVE TAUGHT US all we need to know about trading: You can’t fight the stream forever, you may get eaten by a bear, and if [...]
Have you ever interviewed yourself?
Posted by Raghee Horner on February 14th, 2013 at 12:53 pm, Comments: 0
When my sister and I were little, we would actually dress up to interview each other. I think we were probably doing this with some [...]
Five Days til the New Year: The 20-Minute Goal Setting Experiment
Posted by Raghee Horner on December 26th, 2012 at 1:42 pm, Comments: 0
I had a chat with my buddie Rob Booker for his popular Trader’s Podcast last week and as always it was full of classic, short-attention [...]
EUR/USD Breakout through 1.2900 and Intraday Set Ups to Watch
Posted by Raghee Horner on November 23rd, 2012 at 2:51 pm, Comments: 0
When I wake up to see the U.S. Dollar Index down over 40 ticks and the Dow not responding (early before the Wall Street open) [...]
A forex trader’s view of today’s equities meltdown.
Posted by Raghee Horner on November 7th, 2012 at 7:20 pm, Comments: 0
No need to politicize today’s move as tempting as it may be. Traders (should be) smarter than that. A look at the timing of the [...]
A fun experiment: What if you could become an expert (at anything!) in twelve months?
Posted by Raghee Horner on November 2nd, 2012 at 4:15 pm, Comments: 0
I’ve been a fan of Tim Ferriss and his “Four Hour” series (Four Hour Work Week and Four Hour Body and the upcoming Four Hour [...]
EUR/JPY’s 200DMA Makes for an Interesting Intraday Set Up
Posted by Raghee Horner on September 19th, 2012 at 4:50 pm, Comments: 0
I love when a 200DMA is in play. In this case it’s the EUR/JPY that’s battling it out with its 200 period simple moving average [...]
The Dollar Continues to Bounce Inside its Bear Flag
Posted by Raghee Horner on August 30th, 2012 at 5:24 pm, Comments: 0
The daily U.S. Dollar Index continues to trading in a range that can be defined by a bear flag. What characterizes this pattern is the [...]
Will the Dow’s pullback be bought?
Posted by Raghee Horner on August 22nd, 2012 at 3:59 pm, Comments: 0
The Dow ($YM_F) spent much of June and July chopping sideways. Waiting for the trend means being patient and identifying where the sentiment will accelerate [...]
Raghee Horner is a private trader and author based in South Florida. She began experimenting with market timing and charting analysis in 1989 at the age of 17... (More)
- Discretionary Trading: Why do some traders think that means trading “freestyle”?!
- Are you swimming upstream?
- Have you ever interviewed yourself?
- Five Days til the New Year: The 20-Minute Goal Setting Experiment
- EUR/USD Breakout through 1.2900 and Intraday Set Ups to Watch
- A forex trader’s view of today’s equities meltdown.
- A fun experiment: What if you could become an expert (at anything!) in twelve months?
- EUR/JPY’s 200DMA Makes for an Interesting Intraday Set Up
- The Dollar Continues to Bounce Inside its Bear Flag
- Will the Dow’s pullback be bought?