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Tuesday, March 9, 2010

Trading the "Right" Way (VIDEO)

"For me context is the key - from that comes the understanding of everything." - Kenneth Noland

Traders develop different rule sets for themselves, according to their chosen methodology; that usually "fits them" psychologically. At times, they will discuss these 'trading rule sets' with others, or in public.

A problem arises when you may hear two different, yet profitable traders discuss 'rule sets' that seem to be in contradiction with one another. I discuss this in the following Vlog entry ...

(Video Included. If you're seeing this entry elsewhere and cannot see the Video? Click here to view the entry ...)

If we wanted to include long term investors in the above scenario, we could continue that conversation even further. Because investors always buy weakness, and never buy strength. In fact, this is what separates good investors from bad investors. A good investor buy's weakness.

But for a momentum trader to buy weakness because a investor buys weakness and is profitable? It would be a disaster for the momentum trader.

I will continue these thoughts in a podcast entry "Managing Energy to Enthusiasm".

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Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have over 13 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.


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