Comments on: Fear & Trading http://trading-u.com/blog/index.php/archives/2431 Forex & Futures Trading Education Sun, 09 Jan 2011 20:29:47 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Phil http://trading-u.com/blog/index.php/archives/2431/comment-page-1#comment-374 Phil Wed, 11 Aug 2010 07:55:05 +0000 http://trading-u.com/blog/?p=2431#comment-374 Another great blog entry, Jay. Can't say I fully agree with Fred here. I see back-testing and demo- or paper-trading as playing a very important role - a bit like a pilot, athlete, doctor etc trains up repetitively without having the stress variable in the equation. Stress also tends to greatly inhibit our creativity. Once trained up and doing it for real, when the pressure and stress kicks in then the training can take over. Makes things a bit more mechanical, if you like. You have, in effect, trained yourself, rather than jumping straight in at the deep end, lamb to the slaughter, and letting the stress and fear train you perhaps into becoming a perpetual hit and run scalper who has not invested the time into training themselves on demo to sit through drawdowns and the inevitable losing streaks where they bail out just as the profitable streak was about to kick in. If you've paid due diligence and trained yourself hopefully you'll have the training and confidence to do the right thing when needed, and achieve some good runners - which I suspect is the best and most efficient way to build an account. cheers Another great blog entry, Jay. Can’t say I fully agree with Fred here. I see back-testing and demo- or paper-trading as playing a very important role – a bit like a pilot, athlete, doctor etc trains up repetitively without having the stress variable in the equation. Stress also tends to greatly inhibit our creativity. Once trained up and doing it for real, when the pressure and stress kicks in then the training can take over. Makes things a bit more mechanical, if you like. You have, in effect, trained yourself, rather than jumping straight in at the deep end, lamb to the slaughter, and letting the stress and fear train you perhaps into becoming a perpetual hit and run scalper who has not invested the time into training themselves on demo to sit through drawdowns and the inevitable losing streaks where they bail out just as the profitable streak was about to kick in. If you’ve paid due diligence and trained yourself hopefully you’ll have the training and confidence to do the right thing when needed, and achieve some good runners – which I suspect is the best and most efficient way to build an account. cheers

]]> By: Fred http://trading-u.com/blog/index.php/archives/2431/comment-page-1#comment-373 Fred Mon, 09 Aug 2010 23:01:51 +0000 http://trading-u.com/blog/?p=2431#comment-373 I agree the psychology is a big part of it. Technically I disagree that backtesting and demo makes it any better. You CANNOT work through the psychology without trading real money. Full stop! Methods too. Because you will not trade them the same in demo or back test as you will with real live money. It is easy to get a real account with real money for as little as $100 which allows you to trade as little as one penny per pip. Demo and backtesting is a complete wasted of time IMHO. I agree the psychology is a big part of it. Technically I disagree that backtesting and demo makes it any better. You CANNOT work through the psychology without trading real money. Full stop!

Methods too. Because you will not trade them the same in demo or back test as you will with real live money.

It is easy to get a real account with real money for as little as $100 which allows you to trade as little as one penny per pip. Demo and backtesting is a complete wasted of time IMHO.

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