Hi all,
When I think of what constitutes discretionary trading, I think of trades that are based on decisions and that two different traders may react differently to the same situation. On the other hand, mechanical or system trading is one that has a very clear algorithm it follows for every element of the trade (from entry and position sizing to exits or stops) and all traders will do the same thing (if they follow the plan, of course).
I have an affinity for price action. I feel like it has the potential of being more accurate than reliance on indicators. But I would like to have consistency in my trading - indeed one must be consistent if you want not to screw up your odds in the long run. It seems like it’s a lot easier to be consistent with “indicator X crossed indicator Y at the same time that oscillator A shows value of B” than it is to be consistent with “if you spot pattern P, go long”.
I don’t know, I think different people see different patterns and you can never fully take discretion out of pattern recognition…
Where am I wrong here?
[I]*Note: I am still in learning phases and not even demo trading yet, so the question should be taken in that context.[/I]