Question:

How can I know and use your best trading strategy?

           David  from Wantmineville

Answer:

David, the simple and direct answer is you can’t. No, it’s not that my strategy is so good, and I want to keep it to myself. The reason I won’t give it to you is much simpler—I actually want you to succeed as a trader. If I simply tell you what I do, then it is a disservice to you.

Trading is hard work, and I have spent years now learning the craft and polishing the art of trading, but because I am successful, that does not mean you would be using any strategy I give you. The reason is two-fold.

1)      If you don’t put in the years of work, you will not be successful. Just as any parent or teacher should tell a child or a student there are no silver bullets, no magical, easy ways to make money trading, despite the claims of those who would sell you success, I tell you the same. Don’t take my word for it, ask any successful trader.

2)      Trading strategies are personal to the trader. Yes, we all follow the same basic rules, but the success in trading comes after one masters the craft. Consistent success comes when you begin to master the art of trading, and the art of trading has everything to do with you and your “sense” of trading, and your sense about a trade comes from what you know, which is the heart of successful trading. Knowing the context of every trade you make is one important key to success. Knowing the “context” means understanding how certain news will affect your market. Knowing means understanding the ebb and flow of global economics, and how that will affect your trade. Knowing means intuitively understanding when a trade is heading south on you, so you can get out with minimal loss, or it is beginning to run strongly in your direction, and you can set your stop to run with it. I could go on, but I think I made my point.

In the end, David, you must understand that trading is like any other arena in which making money is the goal—you have to be good at what you do, unless, of course, you are a member of congress or a senator.

Trade in the day; invest in your life …

Trader Ed