Discretionary trader

Trade with a proven trading process, consistently.

In doing so, we need to decide if we are a systematic or discretionary trader?

With a system method, the rules ought to be precise; buy when the price is above the 200 days high, for example.

But as a discretionary trader, a trade is open to subjectivity. It may include, for example, an individuals interpretation of support and resistance; something that with ten traders will produce several different solutions.

Therefore, as a discretionary trader, a precise understanding of trade selectivity is crucial. In other words, as a discretionary trader, we trade as if we are system traders. That takes some time to grasp. But it is essential that we do.

In addition to either a systematic or discretionary approach, financial trading has so many facets; it is a challenge to know where to start. For example, the technical analysis which envelops the interpretation of charts, set-ups indicators and their associated patterns is vast.

To find a trading way that matches our personality is often a trial by error process. Even a method that works wonderfully well for one will more than likely not work ideally for another. And an edge in this competitive zero-sum game is fleeting.

A systematic trading model requires commitment.

A discretionary approach, however, requires constant practice and a real understanding for it to become our own; and then followed as if it were a system.

The discretionary angle never stops evolving. But, and probably an essential point, we only change slowly and never during a ‘live’ period.

Once we have established our grounding, we attract other thoughts and principles based only on our chosen way, and we can economically disregard everything else; this creates focus and the all-important consistent approach.

How would I describe my discretionary trading technique? I want to think that it is simple and conservative. It looks at a few markets and enters with momentum and dominance from a precise set-up with the appropriate trend.

Published by Day Trader

I flew fast jets for 30 years of my life. I've traded full-time, more or less, for the last ten years, initially from fundamentals and over the last few years as a dedicated day trader. I live on the North Norfolk coast.

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