» What Works in Trading II Blog for Trading Success: Ray Barros

Published in March 17th, 2010

BarroMetrics Views: What Works in Trading? II

The attached PDF is the second part to James De Wet’s article that I posted in What Works in Trading? In this blog, I attach the ‘climax’ - James’ four part ’secret to FX trading success’.

I totally agree with the four principles:

Success requires time, effort and preferably a mentor. This idea is in line with the new discoveries in Neurology.
Create a set of trading rules and follow them. I believe in Mark Douglas’ dictum that all newbies should start as mechanical traders. Having said that, I know from experience that to succeed each trader will have to make a set of trading rules his own.
Have a set of risk management rules and follow them.
Learn to use the magic of compounding rather than looking for ‘instant’ wealth.

All good stuff as general principles. Of course the devil is in the details of implementation. This is where the work of Daniel Coyle (The Talent Code) and David Rock (Your Brain at Work) come in.

The caveats I mentioned in What Works in Trading also apply here.
secret2.pdf

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3 users responded in " What Works in Trading II "

baz said, in March 17th, 2010 at 6:06 pm

Hi Ray, just getting back to the recent videos and When is a death zone not a death zone? A nebulous thought crossed my mind and possible fuel for your upcoming blog. The use of market profile and standard deviations in the death zone may prove or disprove Ganns 50% rule.Which he describes in his book,that this rule alone will make you rich. His 100% rule seems,prima facie,to mesh well into your own PBZ and PSZ s. Maybe a case of new technologies proving the old masters correct.As for the rest of Gann theories i can never really undertand although i try not to be ignorant. cheers Baz

ray said, in March 17th, 2010 at 7:27 pm

Hi Baz

Ok, I’ll make sure I refer to the 50% in the blog on the DZ.

If space, I’ll even throw in a few comments on the 100%. (G).

I am with you on Gann techniques like the astrological aspects, squaring of ranges etc. I have never been able to validate the tools or made them work for me.

That’s not to say that they won’t work for other traders.

coconut said, in March 18th, 2010 at 9:09 am

“the magic of compounding”

agree agree agree!

i guess only those who trade (or invest) long enough would understand what it means.

it is indeed magic, but don’t seem to be attractive.

a 100,000 with a return of 25%/year, you will be a millionaire in ten years time.

cheers to the million

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