Re: Stock System
ok, I went back to the source and pulled Van Tharp's book off my shelf to review the context of your quote...
Here are some additional quotes from the same chapter:
"The first approach is to assume that reliability has some importance and to look for signals that are better than random."
"Readers who have studied my Peak Performance Course for Traders and Investors know the importance of stalking the market. Stalking amounts to waiting for exactly the right moment to enter the trade so that risk is minimized."
"I've divided this chapter into four sections. The first section has to do with random entry and with the research designed to increase one's reliability over random entry into the market."
In short, Van tharp uses the example of a random entry system as a baseline to compare other more managed systems. He is certainly not recommending that you trade a random system.
|