What Is Discretionary Trading?
Discretionary trading basically means you do your trading by hand. You take your signals from a variety of sources, or you have a specific strategy or set of tools that help you make trading decisions. There is little or no automation, for the most part you are pushing the buy and sell buttons.
We teach people who like to trade the discretionary way, but we do it with a systematic approach. Which means that there are trading rules to abide by, however within those rules there is some discretion on when to actually take the trade.
Advantages and Disadvantages
There are many very successful discretionary traders, and you can do quite well, so long as you are disciplined and consistent. Discretionary traders that know their edge and work within the rules and practice sound money management can and do succeed. But there is also a great deal of risk as well…
That risk is typically born from the inherent fallibilities of being human. We are subject to emotions, like fear and greed, we are also subject to distractions, which can result in costly mistakes being made.
Knowing Your Edge
Most discretionary traders don’t have a firm grasp on what makes them profitable and why, they just go on instinct. It is very rare to find such a person that is consistently profitable.
That is why we teach a sound approach where there is an underlying philosophy and methodology that guides the strategy and tactics. We employ a variation of theme based on a well known strategy that looks at the treasury yield curve.
The strategy is statistically based, so we know the odds of the trade, and we employ methods that stack the odds in our favor. The key to being successful with the strategy is employing sound money management.
This is a variation of the same strategy used by institutional traders in investment banks, hedge funds and proprietary trading firms. The strategy is very simple and can be learned in a few short lessons, and comes with live support. If you would like to learn this strategy, you can schedule your first lesson below. For more information click here.
Or call Ernie directly on his personal mobile phone: (508) 446-0517