The recent post emphasized the importance of finding creative trading niches. The cracking bulk of traders I've known who receive got sustained success receive got developed their ain unique "take" on markets. They either aspect at unique information, or they get together existing data inwards unique ways. This enables them to encounter patterns that escape the attending of others.
One unusually successful trader patiently explained to me around years agone that he tracked a multifariousness of commodity prices every bit good every bit the pricing of commodity options in addition to futures for diverse expiration months. The relationships with the commodity prices--and the expectations built into the futures in addition to options--told him which sectors of the stock marketplace position were most probable to outperform the others. So he bought those sectors in addition to sold the probable underperformers. His trading was ever marketplace position neutral: the full general stock marketplace position could become upwardly or down, merely he would ever brand coin every bit long every bit he was inwards the sectors that performed best.
He no longer trades that strategy; he felt that the long/short infinite became likewise crowded several years ago. Now he tracks completely dissimilar economical indicators to attain something similar with global stock markets. So, for example, he has been long sure enough emerging economies in addition to curt other, developed ones.
What initially impressed me virtually this trader was non solely his last ethic in addition to might to sentiment in addition to merchandise markets inwards fresh ways, merely also his confidence level. He was extremely confident, merely non overconfident. His confidence was a straight trial of finding his ain trading strategies: ones that made feel to him in addition to that he had researched. He could atmospheric condition drawdowns in addition to add together to winning trades, because he knew how his markets performed.
What impressed me most late virtually this trader has been his willingness to remake himself every bit markets changed. He didn't hesitate to supervene upon 1 strategy with around other when he saw chance fading.
No trouble concern marketplace position remains static. Successful businesses ever receive got to remake themselves in addition to conform to changing economical in addition to demographic conditions. Trading every bit a trouble concern is quite similar. The might to honour chance in addition to encounter the footing through fresh eyes is a virtue of all fine trouble concern leaders. They don't come upwardly to markets to gamble; they approach markets every bit entrepreneurs.
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