c19 JWBT016-Busby October 9, 2008 11:2 Printer: TBD
The Last Word 185want confirmation from the Nasdaq and NYSE issues, and I want the other
indicators like the TTick and V-Factor giving me a warm and fuzzy feeling.
I use time, key numbers, and market indicators to execute all of my
strategies. Whether I am trading stocks, futures, options, bonds, or com-
modities, I select the right time, rely on key numbers to lead the way, and
seek confirmation from market indicators.
The most difficult part of trading is that it is not a one, two, three-
step process. Trading is an art, and like a painting or a sculpture, there
are many variations and nuances. That is why learning and education are
so important. To a large degree, you have to sense what is happening and
react to it.
In addition to mastering a particular strategy or game plan, there are
many other skills that come to play in the art of trading. If you want to be
a winner, you need to be disciplined and follow your strategy day in and
day out. You need persistence so that you are not emotionally defeated by
each loss. You must have the ability to trade without becoming greedy or
overtaken by fear. If you get too arrogant, your arrogance will cause you to
lose your perspective and, with it, your analysis and ability to make good
trading decisions. When you are wrong, you will not be able to admit it and
the result will be financial ruin.
Another critical aspect of any trading strategy is risk management. You
cannot trade with abandon and lose track of your money. If you do so, you
will not be trading for the long haul. Manage every trade and keep losses
low. If you experience a number of bad trades in succession, quit trading.
Get away from the market and spend time analyzing the problem.
If there is one message that you must take away from this book, it
is the importance of education. The markets change, and as they do, so
must you. Education is the key to being able to adapt to any market and
make money. If you want further guidance, you may wish to obtain a DVD
that DTI has prepared,The Trader’s Edge.This DVD gives some addi-
tional specific approaches to trading today’s markets. Visit the web site
at http://www.dtitrader.com for more information and a reader’s discount.
I hope the strategies and insights that you have learned from these
pages will be helpful. Keep studying the markets and learning about them.
Knowledge pays!