I hear what you're saying but being a discretionary trader isn't exactly mutually exclusive to being a rule-based trader, he can be extremely rigid regarding the setup by simplifying a single strategy and actively looking for it in the market whilst ignoring everything else, but still be flexible enough with the staking and managing of the position.ruthlessimon wrote: ↑Thu Jul 18, 2019 5:04 pmCan. Of. Worms.
Given the context (i.e. First trades) I have to disagree. There is nothing better than 1 entry, 1 exit. Keep it as rigid & basic as possible. So much easier to spot the errors that way - with the plan, & our own demons (assuming a new trader has a plan!!)
A trader could make £10k a yr with a 1 entry, 1 exit strategy - yet there's a 90% failure rate. Personally, I believe it's caused by people believing they'll have the gift for discretionary trading, right off the bat.
It's never too early to start creating good execution habits before bad ones set in, with a one-dimensional approach he has to constantly make absolute decisions where to enter and where to exit which can be very stressful, even if the trade is going well there's always that fear of the price quickly pulling back, so why not exit half of the stake at some point to secure a bit more breathing space both on the ladder and in his mind to feel more in control. We're all aware that good execution and proper risk/position management is an edge in itself even by trading completely at random by cutting bad trades and letting the good ones run, so why not start learning towards that.