Complete Futures Trading Systems
Posted by | Posted in Day Trading | Posted on 29-10-2009
An interview on complete futures trading systems and trading profits. Stuart McPhee quizzes legendary trader Ray Barros.
Ray Barros: Mark Douglas, the guy that taught me many things about trading said that irrespective of our personality, some traders may be subjective where they have set of rules but also have got intuition to play with. There are the fully mechanical who will follow our rules no matter what, and a discretionary who has no rules. That’s fine whatever suits, but the point Mark made was everybody should start with a mechanical system just to learn discipline. In that environment I think indicators and support and resistance play a part.
Stuart McPhee: Okay, that’s a good segue with discipline because that was my next question. I have a plan that follows the rules. If you had people say that to you do you have any advice to people who have discipline as an issue?
Ray Barros: It depends. You know I run mentor classes. Some students I can assist them and some I can’t because some people have a lack of discipline from sheer habit. We can create new habits. You can substitute positive belief for that negative belief and you slowly create new habits. That’s doable. However, there are some people who really have a problem. Mike could not trade leveraged instruments; stock markets he was fantastic, he followed the rules.
Mike if you are out there, forgive me. Mike could trade stocks perfectly. He wanted to trade. Honestly I was at wit’s end. Nothing I did worked because I couldn’t understand why he would follow the discipline trading stocks but shifting into leverage instruments, and particularly futures trading systems, and he became the biggest cowboy in the world. There was a guy called Dave Hunt who used to run seminar classes for me in Sydney and he did an exercise and Mike got brought into this exercise.
In the process of that the story came out. Mike’s grandfather lost the entire family fortune trading gold futures so throughout his life he was brought up with the idea trading futures is a sin. It’s gambling; honest people don’t do it. That’s what I call a fundamental belief that was running through Mike’s head and he was unconscious of that and so whenever he traded futures he was going to sabotage himself. Stuart McPhee added: To go deep, deep in the mind.
Ray Barros: Bring out an unconscious fundamental belief paradigm. And he wasn’t aware of that. He wasn’t aware. So it’s amazing. You will see in the blog I continued the therapy and the stuff that comes out is unbelievable I would recommend it to any trader for capital protection.
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