I'm sure that all seasoned market traders have read the various books out there on trading philosophy. There is a vast amount of intriguing information for our enjoyment and education, from the Elder-esque psycologically founded views to the application of Tsu's Art of War to the markets. I'd just like to take a moment to share my trading philosophy and to hear what yours is all about, if you will be so kind as to indulge me.
I think of my trading style as patiently predatory. Let me explain. If you watch the Discovery Channel or National Geographic type shows a pattern quickly emerges whenever large predators are featured. It does't matter whether it's a show about lions, crocodiles, or killer whales. The most impressive predators hunt only when they have great odds of making a kill. The killerwhale goes for the baby seal in the surf. The lion attacks the young gizzelle. The crocodile eats the unsuspecting and virtually immobile, swimming baby water buffalo.
I think of myself as a bullish trader. I do not short stocks. I make my money by going long on a trade. I'm not talking about going long in the traditional sense. What I mean is going long in the sense that you buy at one price and sell later (10 minutes, 1 day, 1 week, 2 weeks max) at a higher price.
Since the market is about bulls and bears, locked in a constant struggle for victory, I see myself as a strong and patient predatory bull. I must do battle with the bears but rather than take on an angry, fresh and energized grizzly for a long duel, I prefer to attack a bear that has been fighting for a long time and has grown extremely tired. Like Sun Tsu reccomends to his generals, once the opportune moment presents itself (i.e. once the bear is bleeding and exhausted from his bout with other bulls and is about to collapse) I explode toward him from the brush with great power like a violent bolt of lightning! He has almost no chance of defeating me. Were the playing field even, he could destroy me but because I have waited patiently in my search for a weak and tired bear on whom I can feed (profit from), I will be the victor.
This very simple philosophy took me 4 years to discover, develop, and confidently execute. This is why I am the proponent of the bounce play. The strength of the bears can be gauged by taking into consideration factors like, support, resistance, volume, the rsi, the stochastic, the cci, bollinger bands, fib retracements/elliot waves, and moving averages. Whatever tools you use, learn how to put your finger on the pulse of the enemy to assess its status and then have the discipline and confidence to attack with full commitment. As Henry David Thoreau states, if we are to be successful, we must "advance confidently." I have garnered confidence through seeing my philosophy work for me time and time again.
After you do that, you will then need to master the incredibly difficult task of seizing the spoils of the battle of which you are the victor (you must learn to take your profits) before the hyenas (other traders) take them from you. But that is a discussion for another day.
Article was written by Mightybridge of Hot Penny Stocks and Canadian Stocks
Mightybridge of Penny Stocks and Canadian Stocks Stock Message Board
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