Trade to Win - Proven Strategies to Make Money

c05 JWBT016-Busby September 30, 2008 13:49 Printer: Yet to come

The Art of Trading 65

III.Check the Economic Calendar

1. Record important news items.


2. Look at a 24-hour trading day.


3. List each important news event by date and time.


4. Be ready to make money when the time comes.
   IV.Execute a Winning Strategy
   Once market direction has been determined, the following strate-
   gies are possible:
   Buy stock or futures.
   Buy calls.
   Sell puts.

Sell stock or futures.

Sell calls.

Buy puts.

V.If No Direction Can Be Identified—STAY OUT OF THE MARKET!

Review

Formulas work in laboratories and classrooms, but they do not work when

one is trading the financial markets. Markets are dynamic, and prices are

continuously shifting and changing. Only traders who know how to read

the tape will survive. Those traders possess many skills. They understand

the importance of time and utilize it effectively; they comprehend the

power of key numbers and exploit them successfully; they use reliable mar-

ket indicators to cut through the market maze and identify the sentiment

of traders and thereby pinpoint the direction of prices. In addition, they

have emotional balance and use good money management and risk aver-

sion techniques. Trading is an art, and through education and experience

the artist will become more skillful at executing his craft. He will learn to

trade when the odds of success are on his side and stay out of the market

if the setup is not right.

PEARL 7

Chicken, fish, or steak? Make a decision and move on it.