Info!! You Lot Can't Win If You're Non Playing The Correct Game

Mark Minervini makes an interesting point: the marketplace is similar poker inwards that the most of import chemical ingredient of success is knowing which game to sit down inwards on.  All likewise often, I detect that traders inwards a slump focus on the concur 'em versus plication 'em choices of trading when, inwards fact, they're sitting at the incorrect table.

How tin nosotros sit down at the incorrect trading table?  Several variations of this challenge at nowadays come upwardly to mind:

*  You're a momentum trader as well as you're trading a slow, depression volatility market;

*  You're a tendency trader as well as you're trading a choppy, arrive at market;

*  You're a research-oriented big motion painting trader as well as you're getting caught upwardly inwards short-term toll action;

*  You're a skilled short-term trader as well as you're locked inwards a longer-term directional marketplace view;

*  You're a contrarian fader as well as you're getting run over inwards high book directional flows;

*  You're an independent thinker, simply you're distracted as well as influenced past times the views of others;

*  You're a trader who reads others good at the table, simply you're isolated from other traders;

I've seen people brand coin inwards markets 2 ways:  past times investing as well as past times trading.  Investing agency generating a big motion painting persuasion as well as riding out brusk term vibrations en route to seeing that persuasion materialize.  Investors are top-down thinkers:  they're analytical as well as their science lies inwards putting pieces of inquiry together to shape a motion painting that others haven't nevertheless seen.  Traders are bottom-up thinkers:  they recognize patterns equally they shape as well as deed on them quickly.  Where the investor thinks deeply most chance over time, the trader thinks broadly most what's happening inwards markets at a given time.

A slap-up way to lose coin is to non sympathise yourself as well as how you're wired cognitively.  If you're a deep thinker, you'll lose coin sitting at the trading table.  If you're a fast thinker, you'll lose coin dabbling amongst investment theses.  The route to success is to endure who you lot are when you're surgery at your best.  Working on improving your discipline, controlling your emotions, as well as next your procedure is non helpful if you're sitting at the incorrect tabular array to get with.

Further Reading:  Patterns of Reasoning inwards Markets
.