Axioms of trading

[pulifam]

Axiom - a self-evident truth that requires no evidence.

Can there be such a thing as an axiom in something artfully diverse as trading?

Something that always holds true in every instance?

[jlleokly]

Majority choice is always wrong go against the crowd and you could earn money surprisingly!
So today are you long USD/JPY, GBP/JPY, AUD/JPY, CAD/JPY, or NZD/JPY? . I'd like to if so, what is your risk tolerence?

[pulifam]

Axiom 7: Most profitable traders use discretion.

There's no system that can be traded strictly mechanically. If it could, that could be the Holy Grail, and it does not exist, so consequently, there is mechanical profitable system. Discretion comes from experience. It's a developed instinct, a gut sense, or just recognizing learned patterns at price action, along with heeding fundamental changes.

I could be argued that everything a trader has experienced and learned have come to be a part of his system, and he does it automatically, mechanically, and consequently he is not using discretion. In the sense of the word, this could be true. But to the audience, the student this trader is utilizing discretion, by definition.

No profitable trader can tell you just what it is they do. There are too many factors. A lot of things could learn and follow along as a system. Too many contingencies to plan.

The corollary to this is: You will just need to learn how to trade.

And, probably best said by profitplay in post #34:

The Holy Grail is the Trader, not the Procedure

[pulifam]

I've got another one coming, possibly, or perhaps it's the wine....

It will go something likethe same thing will bi ch slap you again and again, until you understand the lesson.

Is an axiom? I am pretty sure it's. Yes, yes. The market will teach you, all you have to do is listen. And it is not a whisper, you are stomped by it to the ground again and again and again forever park style, till you learn your own lesson. Maintain a journal. Write down if you do well, what you did! Don't simply record trades and mistakes. It is a lot more important, it's vital, when you win to keep records! So just how to state this in one sentence or less....

Axiom 8: The market will teach you just what you need to know to become profitable.

Naw.

Axiom 8: You will keep getting the same lesson over and over until you understand it. Or maybe analyzed until you pass the exam....

Nope.

Axiom 8: Your dragon will keep toasting you until you slay it.

Too obscure.

Well, whateverthehell it's, I wish I'd listened to myself back then.

[pulifam]

The Holy Grail is that the Trader, maybe not the System PS The people selling systems will never tell you this.

[agmayn75]

This is a tough one. Up until today I would have agreed. I don't feel that there is a system which can be exchanged mechanically. I don't believe in EA's. I have reasoned that discretion is the thing that makes a fantastic trader.

But today I sent off money for a Recommended EA. It's impressive. The developer was topnotch. He included all of the tricks. We'll see how it does. Until then, I am optimistic. I would really like to be proven incorrect.

I think that's an opinion, not an axiom. Just for today, I believe in systems. The fact that it's open for debate means it's not an axiom, sorry.
I have been looking at eas for studying purposes only. . .just curious that ea worked out???

[pulifam]

I have been looking at eas for learning purposes only. . .just curious that ea worked out??? See what was being discussed in the initial post, then see post #62.

[emiliocif]

This was just one of the most meaningful threads . It. Here's what I believe are the useful axiom in gambling. It has three components.

1. Trends exist.

2. A tendency is defined as a linear regression line connecting two points in the price X period space.

3. There.

The remainder is simple:. Pick two points on the TF which suits your character, draw a regression line, and apply signal detection theory to tell the error/noise round the regression line by a change in the slope direction...

[giscllSluu]

One way in addition to the description, would be to understand that an axiomatic statement is assumed in almost any statement we can make about the topic. I don't know that I'd call the majority of the suggested axioms from the thread so far real axioms in a logical or mathematical sense. To provide some flavor for what I mean, below are some examples of what I would consider as axioms regarding the market. We want them to be self-evident and beyond dispute right?

I. Some people desire certain resources.

II. Assets that are certain are owned by some people.

III. A market allows people to communie their desires for those resources and their ownership of.

IV. A person might borrow an advantage from another person

V. A person may exchange 1 asset for a second advantage with another person.

VI. When two individuals exchange resources, a market enables other people to see that the ratio of one advantage to the other in the market. This is called price.

That's exactly what I came up with after a Couple of minutes of consideration. Today state VII and you might want to go on. A price can change as the result of a trade or some thing like that. But this wouldn't actually be an AXIOM because you're able to derive that statement from the six existing axioms (I presume ).

I haven't actually examined this with the predie calculus or anything, so that there are probably some glaring mistakes. I wanted to offer an idea of what a pair of axioms might look like.

[menpklinok]

BUY LOW SELL HIGH

[ilalgj]

BUY LOW SELL HIGH Yep, but this entire forum, and this thread, and each trading book and piece of advice in existence has been written to help solve the mystery of how to know when you are at a high or a lowcost.

Easier said than done, isn't it

[menpklinok]

Someone didn't read the thread. Go figure. I read the thread. You wanted an axiom, yes? Geez, I did not
realize my answer was too clear to be an axiom.

[pulifam]

I read the thread. Perhaps you wanted an axiom, yes? Geez, I didn't
realize my response was too obvious to be an axiom. My mistake, sorry.

I spoke about axioms being general by nature and used the case buy low sell high but it should have been in another thread, I believed it was in this thread. I guess I didn't understand what was in my thread!

[belho125]

To speculate means while there is some unknown factor, we jump into action,

[kimlsah]

Then is speculation.

[belho125]

Indeed, as we frequently say: give me one good reason (only one reason to do something)

[kimlsah]

Included in Blue's trading style, philosophy, system, anything you want to call it, he states (paraphrased) Require three reasons to go into a trade but only one to depart. Incorporating this one simple rule has enhanced my trading dramatically.

This contributes to a fantastic quote I read in someone's sig (sorry, forget who):
It is far better to be from a good commerce looking in than to be in a bad trade searching.