Very personal post over at dinosaur trader illustrating the day to day of a trader and how things can go very wrong. A must read.
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But despite his adoration for commodity trading, he bemoaned the growth of computerized trend trading and all the resulting false breakouts he believed were due to too many people watching for the same patterns. He then made a rather dark prediction, “There will come a day when easily discovered and lightly conceived trend-following systems no longer work.”
Finally, Dennis throws at least one specific trading rule our way, and while I’m not a swing trader, it makes sense. He explains, “it is important not to have a short position with a loss on Friday if the market closes at a high, or a long position if it closes at a low.”
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