Making it your own
We hear this all time in the investing world. Especially
when completing trading or investment courses. It took me 15 years to work this
one out, and personally I am not sure even the people telling us to make it
your own, had made whatever they were selling their own. Mainly because most
trading and investment systems if you drill right down to it, are pretty much
all the same.
So here is my take on “making it your own”
For me, I spent a lot of time and money studying other peoples
systems and process, looking and always searching. Learning and learning. As
noted on a previous blog, it gave me the ability to be able to forecast time
and price on the futures market and on some stocks. Wow, surely this is “making
it your own”. However, to me it felt like I still did not know what I did not
know… no matter how much I knew…
The NUMBER one rule: Make sure your Trading makes MONEY. If
you do not make money, obviously, you are doing something wrong, and you are
following the herd, with the blind leading the blind and you are in denial.
It took me to get ill to realize what I had been doing
wrong. So upon getting back and of good health I cleared my desk, put all the
books away and went through everything I had learned methodically. With one
thing on my mind. How can I make the most amount of money whilst reducing risk,
but also having the highest probability of profitable trades. This is where I came
up with “Random Statistical Probability” Imagine I could use all that I had
learned and apply it and make money regardless of the market direction…. Hmm this
got me thinking…..
For me to make it my own, I HAD to create all my own programs, systems, and robots. I had to go
that far, I had to go that extra mile; I could not just follow, and implement a
system someone was selling me, no, I had to take it to a completely new level. I
had to lead from the front; I had to make my own programs. I needed to drafted
up my plan, and then tested my theory’s, once I knew a system had legs and was
going to be profitable I then created my own program using c++ and C#.
Why use other peoples programs? That is my argument. If a
moving average crossovers or MACD etc etc is so great how come nobody is making
money from these…… Surely if they were as great as every single person harps on
about, everybody buying any program with those lagging indicators in the
program would make money… Once again, it is all sales and bullshit. So come up
with your own idea and create a program to implement your ideas and make it
your own.
I like to reference it to the gold mining days. The only
people making money in the gold mining era was the people selling the tools for
the gold miners to use. Think about it. They gave the miners the dream, imagine
the possibility if you hit the payday…. Sound familiar? Why are there are so
many programs out there, all with the same MACD and same MA etc etc on them? Further, if these programs where so great why
are they selling them?? Yes, I have bought a lot, all in search for that
missing link to help improve my trading, some did, and some did not. Nevertheless,
all of it is perspective.
Sit down, work out your strategy, don’t guess, I mean really
work it out. Complete some robust testing, using maybe excel or something easy
to code with to see if it holds water, and is going to be profitable, and then once
you have proved to yourself it is going to make you money, if you cannot code,
jump on a forum and get someone to code your program up using your brokers API.
Simple…
Make money from your
trading. If you are not making money STOP
following other peoples theories and stop following what works for other
people.
MAKE IT YOUR OWN AND
TRADE YOUR WAY
