Have faith in your thesis

I'm sitting at this Hedge Fund that I work at - Forex Signs, Inc, and one of our head traders - Noah Muchai, is standing around talking to another trader about the importance of having faith in your thesis.

Based on books I've read, this is the most important rule in trading. People do not lose money based on following a system - people lose money because they stop following their system and start making erratic, hope and fear-based decisions. According to Noah, if the technical indicators in your system do not confirm, then you DO NOT enter the trade. Just don't do the live account, study it more, and make sure your own system... is secure, and that you BELIEVE in it.

Don't always be looking for a new system. Sometimes the older systems work the best. According to Curtis Faith (The Way of the Turtle) very basic breakout systems can work just as well as the newest "quant" and... what's that word... obscure? systems.

Can I have faith in a system? I think I should have faith... in the trending system that Ivy (this trader who worked with us interns during the first few weeks) taught us. It is very simple. Draw trendlines, have it match to at least 3 points. Bet into the trade only when it hits the 15% level of the trading range. Only trade in the direction of the trend.

Let's do it. Let's follow that. Don't try the breakouts or whatever. Just do that. And use Fibonaccis to confirm/restrain your trades (meaning, if it's going to hit an important fibonacci level, it's better to wait to see what happens)