system, risk management and psychology in trading

[11/14, 9:10 PM] @ashokji:

If trading is
15% system
15% risk management
70% psychology
Why do most traders spend 99% of their time on developing systems?

[11/14, 9:29 PM] Js:

because psychology and risk management are steering and brakes which though critical won't move the car without the engine of system. while psychology can be tamed with enlightenment, and risk management with practice of rules, it is system which is the most tricky part. while risk management and psychology are defensive measures, system forms the basis of the offensive IMO. I'm not sure about the percentages you have quoted above, but the breakup applies more to the stage when you have broadly figured out the system. because it is then that the slippery oily psychology prevents the implementation of the system and hence consuming 70 percent of the effort. having said that, 99 percent is bit too high and indicates the state of mind of a trader who is trying to compensate lack of risk management and weak psychology with a non existent super system....

: I got my risk management sorted out first of all, and psychology thereafter. but despite risk and psychology in place, the search for the least inefficient, most adaptive, best fit, advanced yet simple practical system out of hundreds possible has taken real long. it's like painstakingly searching for the right key out of a bunch of hundreds.

: every system is notorious to flatter to deceive though only after prolonged testing. the Edison in every budding trader is generally cursed to try a hundred ways before succeeding in making his bulb.

: every system has some limitations which can be taken care of by the risk management and psychology...

: your question was stimulating. thanks