Trade to Win - Proven Strategies to Make Money

c02 JWBT016-Busby September 30, 2008 13:33 Printer: TBD

Time Is Money 29

FIGURE 2.2 Wise traders follow the center of trading as it moves from Asia to

Europe and then to the United States.

developing. I am able to watch as a buying or selling wave grows in Asia

and gains strength as it moves westward. I see the swell get bigger and

watch as Europe adds to the move. Then I pay close attention and decide

how I am best able to use that information to improve my trading and make

money.

TRADING PATTERNS ARE TIMELY

Few things in life are as powerful as habit. In fact, habit is considered to

be so powerful that you can actually testify in a court of law about ac-

tions that you have habitually taken: like always remembering to click on

the turn signal in the car before executing a turn or always following the

same route to work. We humans are creatures of habit. We tend to estab-

lish certain patterns of behavior and repeat those patterns day in and day

out. Traders do the same thing. They do not execute the same trades ev-

ery day, but they tend to follow the same trading schedule day after day.

For example, most traders come to work in the morning, study the mar-

kets, determine their strategy and place their trades. Once in the market,

they may hold their positions for several hours. As the morning wears on

and lunch hour nears, many leave their trading desks or computers and

think about lunch. Traders in Chicago, New York, and Kalamazoo all do

basically the same thing. They head for the lunch room at the office or cafe ́