The Tale of 5 Wise Men and Our Financial Advices

Inside this forum, there are tons of great stuffs, good stuffs, and useless stuffs. If you ask 1 person s/he will show you 1 way. If you ask another person, s/he will show you another way. So, which EA / Trading System / Book that is good? Which one is suitable for us?

Please read this short story for a while. This is a Chinese folktale, and I think quite relevant for us.

===========================

In a remote distant village, there are 7 wise men who live in a peaceful village. They live nearby and the whole citizen of the village respect them and always do what the wise men told them. After all, they are wise.

One day, a middle age old man took his 14 years old grandson to the town to buy groceries. They also took along an ox with them so they could put things on the ox on the way back. Thus, the 3 of them set out to the town.

The old man put his grandson to ride on the ox and he walks along side the ox while chatting happily with his grandson.

After walking for a while, the 3 of them (the old man, the grandson, and the ox) met wise man no.1.

The wise man no.1 rush to them and scolded the grandson, "Such a disgrace. How could you let your old grandpa to walk while you sit happily on the ox. You must respect your elder. Get down from the ox and let your grandpa sit on the ox"

So, the grandson get down from the ox and the old man sit on the ox. They then continue their journey with the old man on the ox while the grandson walking alongside the ox.

After walking for a while, the 3 of them met wise man no.2.

The wise man no.2 rush to them and scolded the old man, "You moron. You are ruining our future. Children is our future and you let a young child like this walk while you sit on the ox happily. He is still growing and his bones could not suffer such a burden. You on the other hand are not that old and could stand the burden to walk to the town."

So, hearing the advices from wise man 1 and 2 they decided to walk together. So this time, no one is sitting on the ox.

After walking for a while, the 3 of them met wise man no.3

The wise man no.3 scolded them and say, "You are both stupid. The distance to the town is quite far. This ox has nothing to do, what's the use of bringing an ox if you are not going to use it?"

After hearing the advices from wise man 1,2,3 they both decided to ride on the ox together.

After walking for a while, the 3 of them met wise man no.4

The wise man no.4 scolded them and said,"Both of you are cruel and ruthless. How could you let such a small animal like this ox carry both of you to the town and back. If the ox died in the journey because of exhaustion, isn't your effort of bringing the ox goes to waste?"

After hearing the advices from wise man 1,2,3,4 they both didn't know what to do and they both decided to carry the ox together.

Nearing the town, they met wise man no.5

The wise man no.5 said, "Such a brainless action. An old man and a child carrying an ox. Ox should carry human, not the other way around. Where are the Gods who created brains on these idiot people."

==========================================

Now, I think it's quite relevant for us, isn't it?

There are many so called or even self claimed gurus out there. They all said, "My system could make you rich overnight" Like those 5 wise men from the story, which one will you listen to?

There are also people here who have different opinions and kindda "fighting" one and another. Which one is correct?

Let me hear your opinion on our financial situations.

Regards,

Re: The Tale of 5 Wise Men and Our Financial Advices

Thanks William. A very intersting story. :arrow:

1. Trading is a business but not a quick rich scheme. Anyone who promisses guaranteed riches in no time probably is a marketer but not a trader.

2. I have a big doubt about any mechanical system which can produce consistent profit in any market condition without a trader interaction.

3. I don't think an EA can replace a trader. By trader I mean a successful trader but not anyone who trades!

Just my opinion of course. :peace:

Re: The Tale of 5 Wise Men and Our Financial Advices

Thanks William. A very intersting story. :arrow:

 

1. Trading is a business but not a quick rich scheme. Anyone who promisses guaranteed riches in no time probably is a marketer but not a trader.

 

2. I have a big doubt about any mechanical system which can produce consistent profit in any market condition without a trader interaction.

 

3. I don't think an EA can replace a trader. By trader I mean a successful trader but not anyone who trades!

 

Just my opinion of course. :peace:

I totally agree with you My Friend.... :shand:

And that's why, I stay away from EA & more focus with manual trading Now.

Peace,

Re: The Tale of 5 Wise Men and Our Financial Advices

It depend on how one want to trade.

Re: The Tale of 5 Wise Men and Our Financial Advices

In my opinion, I thin both EA and knowing what you are doing should be the key to success

Re: The Tale of 5 Wise Men and Our Financial Advices

It depend on how one want to trade.

I agree with you, some EA can complement a trading protfolio

Re: The Tale of 5 Wise Men and Our Financial Advices

I totally agree. This is why they say that when a same system is given to two people and they trade. It is more than llikely that both will have different results. This is why a person must know oneself to trade one's own psychology.

Re: The Tale of 5 Wise Men and Our Financial Advices

I totally agree with you on this.

Re: The Tale of 5 Wise Men and Our Financial Advices

cerita yg menarik ... Lakukan yg terbaik. Ambil keputusan & follow your heart dan yg penting.. Positive Feelling :) dalam menerima hasil

Re: The Tale of 5 Wise Men and Our Financial Advices

I believe it is personal style. Some trade better mechanically while others prefer the element of discretionary trading.

Re: The Tale of 5 Wise Men and Our Financial Advices

Yep follow your heart...if wat you're doin make you money do it ...test retest and test again cos every one wants a share of your money ...even me in this trading jungle... 8-)

Re: The Tale of 5 Wise Men and Our Financial Advices

Thanks William. A very intersting story. :arrow:

 

1. Trading is a business but not a quick rich scheme. Anyone who promisses guaranteed riches in no time probably is a marketer but not a trader.

 

2. I have a big doubt about any mechanical system which can produce consistent profit in any market condition without a trader interaction.

 

3. I don't think an EA can replace a trader. By trader I mean a successful trader but not anyone who trades!

 

Just my opinion of course. :peace:

I have tried all EAs ....SCAMS i tell you...just trade manually...trust yourself! :D

Re: The Tale of 5 Wise Men and Our Financial Advices

suggestion: focusing on daily bars, manual or automated. this will solve many problems.

Re: The Tale of 5 Wise Men and Our Financial Advices

all the signals are wrong, except daily bars, week and month bars. but then, leverage is a problem..

Re: The Tale of 5 Wise Men and Our Financial Advices

I agree about using daily bars, long term success is most important, and long term bars ( daily and longer) appear to be more reliable.

Re: The Tale of 5 Wise Men and Our Financial Advices

How far are you guys letting your trades go against you before you call it a loss?

I totally agree with you My Friend.... :shand:

 

And that's why, I stay away from EA & more focus with manual trading Now.

 

 

Peace,

Both EA's and manual trading can be profitable.

Not every profitable manual system can be a profitable EA, e.g. one with discretionary factors.

On the other hand: it does not act on emotions; if programmed correctly it is less prone to error; and an EA is very quick at decision making.

Also, You try doing what an EA does, calculating support and resistance levels, calculating stop loss based on these levels, then calculating trade volume based on the stop loss and risk, scan prior price action and indicator values looking for a trade signal, check the trade is acceptable (e.g. price is within the previous days range, etc), then send an order: all within one tick. This is a huge advantage with scalping strategies.

I personally use both EA's and manual systems. I am working many hours a day trying to create my own profitable systems.

Hi

First, thank william for sharing such an interesting story.

Personally, the story tell us that one size does not fit all.

No one method suit everyone or is wrong or right.

We should find our own trading style and focus on it

with discipline, patient and lot of practise. Best is

with an mentor to guide and give advise.

Inside this forum, there are tons of great stuffs, good stuffs, and useless stuffs. If you ask 1 person s/he will show you 1 way. If you ask another person, s/he will show you another way. So, which EA / Trading System / Book that is good? Which one is suitable for us?

 

Please read this short story for a while. This is a Chinese folktale, and I think quite relevant for us.

 

===========================

In a remote distant village, there are 7 wise men who live in a peaceful village. They live nearby and the whole citizen of the village respect them and always do what the wise men told them. After all, they are wise.

 

One day, a middle age old man took his 14 years old grandson to the town to buy groceries. They also took along an ox with them so they could put things on the ox on the way back. Thus, the 3 of them set out to the town.

 

The old man put his grandson to ride on the ox and he walks along side the ox while chatting happily with his grandson.

 

After walking for a while, the 3 of them (the old man, the grandson, and the ox) met wise man no.1.

 

The wise man no.1 rush to them and scolded the grandson, "Such a disgrace. How could you let your old grandpa to walk while you sit happily on the ox. You must respect your elder. Get down from the ox and let your grandpa sit on the ox"

 

So, the grandson get down from the ox and the old man sit on the ox. They then continue their journey with the old man on the ox while the grandson walking alongside the ox.

 

After walking for a while, the 3 of them met wise man no.2.

 

The wise man no.2 rush to them and scolded the old man, "You moron. You are ruining our future. Children is our future and you let a young child like this walk while you sit on the ox happily. He is still growing and his bones could not suffer such a burden. You on the other hand are not that old and could stand the burden to walk to the town."

 

So, hearing the advices from wise man 1 and 2 they decided to walk together. So this time, no one is sitting on the ox.

 

After walking for a while, the 3 of them met wise man no.3

 

The wise man no.3 scolded them and say, "You are both stupid. The distance to the town is quite far. This ox has nothing to do, what's the use of bringing an ox if you are not going to use it?"

 

After hearing the advices from wise man 1,2,3 they both decided to ride on the ox together.

 

After walking for a while, the 3 of them met wise man no.4

 

The wise man no.4 scolded them and said,"Both of you are cruel and ruthless. How could you let such a small animal like this ox carry both of you to the town and back. If the ox died in the journey because of exhaustion, isn't your effort of bringing the ox goes to waste?"

 

After hearing the advices from wise man 1,2,3,4 they both didn't know what to do and they both decided to carry the ox together.

 

Nearing the town, they met wise man no.5

 

The wise man no.5 said, "Such a brainless action. An old man and a child carrying an ox. Ox should carry human, not the other way around. Where are the Gods who created brains on these idiot people."

==========================================

 

Now, I think it's quite relevant for us, isn't it?

 

There are many so called or even self claimed gurus out there. They all said, "My system could make you rich overnight" Like those 5 wise men from the story, which one will you listen to?

 

There are also people here who have different opinions and kindda "fighting" one and another. Which one is correct?

 

Let me hear your opinion on our financial situations.

 

Regards,

i guess now one of us should ask who are the other 2 wise man? (7 - 5 = 2 :) ) and the grandpa and the son .... should be ... the other 2

Loopyno

Hi

 

First, thank william for sharing such an interesting story.

Personally, the story tell us that one size does not fit all.

No one method suit everyone or is wrong or right.

 

We should find our own trading style and focus on it

with discipline, patient and lot of practise. Best is

with an mentor to guide and give advise.

I couldn't have said it better myself - one size definitely does not fit all.

Thanks for sharing this simple but relevant story William! ;)

I have tried both EAs and manual trading. I have had the usual infatuation with indicators and I have tried working on PA alone. I have studied breakout strategies, trend and counter trend strategies, candle formations, divergence strategies, scalping and position trading. At the end of all this I really don't know whether I am any nearer THE answer.

Is there anyone out there who can geniuinely claim to be making money consistently by trading?

I have had periods of success but so often it has been little steps up then lost in a few failing trades.

Yes. I am having a good whine!

Trading is endlessly fascinating but, please, someone tell me that they are making a living from this.

Like the parable, I keeping meeting these wise men. Usually, though, I feel that their solution is to sell yet more useless tools to us mugs.

The real secret of trading is there is none. There is no guru, no nothing. Soros can make $1 billion and he can easily lose that in a matter of days as well. So how can these so-called gurus who claim to have found the 'holy grail' be correct? If they are they won't be selling EA and methods. Soros would gladly give them a $10 million a year job + bonus! Even inter-bank traders can lose a lot of money and make a lot of money at the same time. A friend of mine who was an inter-bank FX trader, lost $500,000 on paper overnight because he forgot to square off his trades.

Needless to say, trading can be profitable. It's just a zero sum game and how it is played.