Es Emini Day Trading: Why Do Some Trading Systems Work Better Than Others

At face value, the obvious answer to this question would be a simple one: Some trading

systems work better than others because they are better thought out and designed. It should be obvious that a system that is superior from a design point would perform better than a poorly designed one, should it not?

But that answer is only partially right.

I have observed on more occasions than I care to admit two traders trading the same system with vastly different results. How can that be? Some possible, and very true explanations are:

1. Some traders are just plain smarter than others and less prone to mistakes.

2. Certain traders are more disciplined than others and can stay within the system parameters.

3. All traders are able to summon up different levels on concentration and self discipline than others.

4. Some traders cannot trade any system, no matter what the circumstance.

I wrote #4 in jest, but this axiom is more true than many realize and will be the emphasis of this article. From the onset, I would like to state that most people can learn to trade effectively with the proper training and experience, but there is that small percentage, say 10% that will never trade very well. There can be any number of explanations for this malady, but I think the easiest way to look at this phenomena is to simply state, they are not cut out to trade. Thankfully, this group of people is small in number, so there is great hope for the vast majority of people.

But there is another factor that I feel all traders should give careful consideration. Its a simple one. We all have different personalities and your trading style and trading system should reflect your personality. Now, I dont want to come off as a pseudo-psychologist, but there is a close corelation between trading style and personality. I will use myself as an example.

I have adult attention disorder. I take medication for the condition. Note: I might add that many think it is a miracle that I can trade at all with this condition. Anyway, I am a scalper, which means my trades are very short in duration and I never maintain an overnight trading position. All of my trades are closed by 3:15pm everyday. As an ADHD sufferer, this trading style matches my personality perfectly. Oddly enough, I did not intentionally choose to be a scalper, rather, my trading style gradually grew into this style of trading. It was an evolution, of sorts. I am a decent swing trader, but never feel completely comfortable with this style of trading...something just seems wrong when I swing trade. And the buy and hold style of investing isnt even in my vocabulary. No, I trade in the same manner in which my brain works. I like my trades short and sweet, and I like lots of action during the trading day.

Sound crazy?

It shouldnt. After some 20+ years of trading I have repeatedly seen traders working the wrong style of trading for their personality, and I often offer the advice I am writing about. Find a style of trading in which you are comfortable and feel at ease.

The system you trade should follow the same pattern as your personality, too. I have never been comfortable with cumbersome, highly technical trading systems. Let me observe some chart price action, give me a few oscillators and momentum indicators to check my observations and I am just plain happy.

On the other hand, other individuals are far more comfortable with charts that look like a road map of New York City, lines intersecting and diverging every which way, and trade very well with this sort of system. Why? It matches their personality.

As you make your way along the path of trading, I highly recommend you look honestly at your personality type when you evaluate what kind of trader you want to become. You might even want to experiment with several trading styles of trading to find which style resonates with your personality. Think about this, because it might well be your best path to trading success

by: David S Adams

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