Objectivity vs Subjectivity in trading

I wanted to start up a discussion on Mechanical vs Discretionary trading since honestly, I feel they are exactly the same thing. A literal definition could render this discussion useless, however I want to earn the distinction between the only relevant subegories of every (Profitable and unprofitable). My theory is the reason why 95 percent of us neglect is that we focus on the differences of the two approaches, which only exist when they are unprofitable methods of trading. It is that I feel the holy grail really exists. I have observed many EA's go and come, all with results that are promising , however, everybody who seems to turn a profit with them has their own method of trading it. Rules or systems are adjusted and those who don't wind up suffering several walk losses forward. There are such traders, who do the same thing setting their logical formulas x unless z, occasion = y outcome occurs which subsequently induce C D to take place. They become so inflexible in their thinking the 1st abberation in market behaviour has them wondering what logic had they overlooked, like EA's looking to produce 99% winning trades. All these are. Instead of looking for a bargain that is good, it feels like we are looking to steal a bit from the market. My advice to this is take a piece and now a salesman, it will most likely make you more cash.

Then there are the similarities. Discretionary in addition to mechanical traders have rules they follow. This is in fact very straightforward. Rules are comparable to inspections of property. There is a checklist you have to go through in order to contemplate the buy. Outside of this checklist are the current market requirements. In property, this can be tricky. First there is the total picture which is relatively simple to explore. But, short term egies in real estate might be rather tricky if you don't know the area inside out, who is buying, who is selling. I live close to Newark NJ. I would be petrified to invest inside, if I didn't understand half of this town. Any outsider who trys to sell to me is going to get the shaft, And of course. Therfore, anyone searching for a short-term startegy in my town be wary. Trading is the same way. Real estate is very forgiving long term, and so is trading.
Where does this forgiveness end? overleverage. This exists in real estate also. This season, 100's of billions in ARMS are coming due. People that place down 0% and got really low interest rate for 5 years are now going to have to pay double or more. Somebodys going to lose every one of these properties hit the market.

Trading is an investment property, you need to put in at least a 20 percent down payment and receive a loan for the rest according to your credit. Now if you are paying 8 percent /year in interest and you can turn over 20 percent or even higher(on the full contract value) basically doubling your cash - you are golden. The thing of trading is the transaction costs and turnover time are less and there is not any interest charge on the loan. Pay the interest to yourself and reinvest your 10-20%. You will be a millionaire in no time. The problem exists in how we look at trading.

Discretionary and mechanical traders that are profitable are diligent hard working balls to the wall people. They understand their land and they look to forsee some risks, weather planned or unplanned. Buy the time that they buy, they are allready in the cash - if they are stuck in a position, guess they pawn that lemon of a house onto. Finding a bargain that is good is 1 part of this investment - everything you do with it is ultimately what determines your fate as a trader. Drown in your cash until you have some to do with it. Remember, property is forgiving since a mortgage allows you to weather the storm. Negative equity is allowed. In trading you'll be right, but negative equity takes you out of this game treat leverage really badly. Keep in mind, you are the bank and has to control your risk vulnerability. I have fully veered of. If anyone has some input on the similarities between both of these types of trading, then please, let us learn from them develop a frame of mind to get profitable trading.

You’ve made some excellent points, and your comparison between trading and real estate is very insightful. The key takeaway is that profitable trading—whether mechanical or discretionary—relies on discipline, risk management, and a deep understanding of your “market,” just like knowing a neighborhood in real estate.
Mechanical systems (EAs) are only as good as the trader using them; flexibility and adaptation are crucial. Discretionary traders also follow rules but make judgment calls based on market context. Both approaches converge when profitability is the goal—they require diligence, patience, and controlling leverage to avoid ruin.
Ultimately, it’s not the method that matters, but how consistently and intelligently you apply it. Profitable traders, regardless of style, think like investors, manage risk, and treat each trade as part of a bigger portfolio strategy. Leverage is where many fail, and understanding its impact is vital to long-term success.
The lesson is simple: know your system, respect risk, and treat trading like a serious investment—then mechanical or discretionary becomes secondary.