You Can’t Win If You’re Non Playing The Correct Game

Mark Minervini makes an interesting point: the marketplace is similar poker inward that the most of import chemical constituent of success is knowing which game to sit down inward on.  All equally good often, I detect that traders inward a slump focus on the stand upwardly for ’em versus crimp ’em choices of trading when, inward fact, they’re sitting at the incorrect table.

How tin hand the axe nosotros sit down at the incorrect trading table?  Several variations of this challenge straightaway 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, make market;
*  You’re a research-oriented big moving painting trader as well as you’re getting caught upwardly inward short-term cost action;
*  You’re a skilled short-term trader as well as you’re locked inward a longer-term directional marketplace view;
*  You’re a contrarian fader as well as you’re getting run over inward high book directional flows;
*  You’re an independent thinker, merely you’re distracted as well as influenced yesteryear the views of others;
*  You’re a trader who reads others good at the table, merely you’re isolated from other traders;


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

A groovy 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 live on who you lot are when you’re performance 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 start with.

Further Reading:  Patterns of Reasoning inward Markets
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