I pulled the first paragraph from Investopedia's
article titled "20 Rules Followed by Professional Traders".
Long-term profitability requires two related skill sets. The first is to identify a set of strategies that make more money than they lose and then to use the strategies as part of a trading plan. Second, the strategies must perform well while the market experiences both bull and bear impulses. In other words, while many traders know how to make money in specific markets, like a strong uptrend, they fail in the long run because their strategies don't adapt to inevitable changes in market conditions.
Imagine playing a Poker game where the Dealer
removes half the cards from the Deck.
A football game without a running game,
where the Quarterback only throws the ball
every play. How about a basketball game
where no player ever takes a 3 point shot.
Sounds like a winning strategy?
I trade fulltime and would never only
trade one direction. It makes absolutely
no sense to me, not to mention I'd
be leaving 2/3 of my profits on the table.
The Youtube weekend warriors are not aware
the winning minority in the markets ALWAYS
trade both directions. I've read hundreds of
trading books, and all of them achieved
and MAINTAINED success by understanding and practicing this basic concept.
article titled "20 Rules Followed by Professional Traders".
Long-term profitability requires two related skill sets. The first is to identify a set of strategies that make more money than they lose and then to use the strategies as part of a trading plan. Second, the strategies must perform well while the market experiences both bull and bear impulses. In other words, while many traders know how to make money in specific markets, like a strong uptrend, they fail in the long run because their strategies don't adapt to inevitable changes in market conditions.
Imagine playing a Poker game where the Dealer
removes half the cards from the Deck.
A football game without a running game,
where the Quarterback only throws the ball
every play. How about a basketball game
where no player ever takes a 3 point shot.
Sounds like a winning strategy?
I trade fulltime and would never only
trade one direction. It makes absolutely
no sense to me, not to mention I'd
be leaving 2/3 of my profits on the table.
The Youtube weekend warriors are not aware
the winning minority in the markets ALWAYS
trade both directions. I've read hundreds of
trading books, and all of them achieved
and MAINTAINED success by understanding and practicing this basic concept.
