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The trading world is filled with truisms and generalities, but there are no magical indicators or secret recipes when it comes to trading well. Profitable trading is grounded in a process how you approach your trading approach.
E-Book Content
TRADING Strategies
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The trading world is filled w i t h truisms and generalities, but there are no magical indicators or secret recipes w h e n it comes to trading w e l l . Profitable t r a d i n g is grounded in a process
h o w y o u approach y o u r t r a d i n g a p p r o a c h .
BY THOM HARTLE
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www.activetradermag.com • April 2004 • ACTIVE TRADER
Knowledge and
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Т.Н. White, The Once i
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hen in comes to consistently profitable trading, there are many roads leading to the promised land, but as the saying goes, "Many are called, but few are chosen." New and struggling traders are always looking for something — an elusive insight or technique — that will put everything into focus and allow them to excel. Like virtually any other profession, though, the answer is not some bit of mysterious knowledge or a perfect trading tool. Proficiency boils down to three steps: Specialization, preparation and execution. This should not come as a surprise. For example, when we need medical attention for an out-of-the-ordinary problem, we seek a physician who specializes in the field of medicine specific to our affliction. The physician will prescribe a set of procedures, be they medicinal, surgical or otherwise, that have shown a high probability of success in curing the disease or treating the symptoms we hav