Two Paths to Trading Success
There are two very distinctive paths to trading success: The first path is to study market action in great detail and identify patterns associated with large market moves . When those set up, the successful trader has seen and charted so many of those examples that they can pounce on the opportunity with large size. Also because the successful trader has observed so many explosive moves, they are sensitive to when the explosion is *not* occurring and can exit with controlled risk. For this kind of trader, a key psychological strength is patience. Much of success lies in not trading until the outstanding opportunity comes along. Another important psychological strength is aggression. The very successful trader is not just right, but recognizes when they are right and is able to go for it in size. The second path to great market success is to trade broad rather than big . This is the path of many successful hedge fund managers. They s...