Friday, October 5, 2007

Art of Trading

This concept is not new but I just add it here as a mark in time - so I can go back and rewind to where I was in the beginning once I get into trouble again.

We are talking FX speculation here, right?

Once we set the goal - speculation - it implies a certain positive outcome of the whole exercise, correct?

So since it is speculation, it also implies a great amount of risk - so the money on the table are not for basic needs so we can look at the Trading as an Art not just a means to raise cash...

This way you start trading for the purpose of making the best of your knowledge, skill and experience in the market. Just like Soros says: "You develop a scenario and test it in the market."

So once I'm in the market again we will approach the dealing in a more subtle way. Other thing Soros said was: "At the end only the Trend followers survive." I have been truly convinced you don't have to hang in the market for 14 - 16 hours to make a positive balance - you actually need:

1. A good setup / timing
2. Reasonable leverage
3. Patience to wait for the right conditions align so you have the best R/R ratio on your side.

Other thing Soros said: "You don't have to be in the market all the time - but when I come to the office I really do something."

This is certainly perephrased but the idea is that one or two trades a week can help you earn a living - all the other time you just need to monitor and wait for the right setup - no need to overtrade.

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