Wednesday, August 16, 2006

Fear and Greed

These aspects are slightly different from the fear and greed to be dealt with say, in position trading or investing.
The reason is that a new trader will learn soon enough (with painful losses) that it is smarter to live and trade without having to deal with them.
For a professional trader, the concepts assume a kind of surreal, subtle form.
Greed should be honed into a system of "how to let the winners run" and fear into a "trailing stop". The same thing actually ! Two sides of the same coin.

The most successful traders are like well-oiled machines not reacting to anything but catastrophes, if at all. It is the moment at hand that is important to them and a very spiritual experience to make the most of it wisely, with humility and patience.

Infinite

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