The secret to trading is often thought to be more a function of time frame than a function of skill. In much the same way that university students and alumni promote and defend their alma mater, come hell or high water, so do proponents of the different schools of trading. With almost fanatical zeal, traders will tout the benefits of being a day, position, or swing trader.
One trader will say going home flat is the only way to trade; another trader will say that the trend is your friend. Who's to say either is 100 percent right? As with many things in life, success in trading is not cut and dry. If it were, everyone who attends a trading seminar quantum ai tradingor reads a trading book would be able to emulate the success of the speaker or author immediately. Each trader has to find his own path to success, using the information that he acquires along the way as a guide post towards his end goal.
George Soros, Warren Buffett, and Richard Dennis are each successful in their own right. George Soros founded the Quantum Fund with the express purpose of speculating. Much of his trading revolved around short-term and opportunistic currency moves, long before he established his non-profit company. Warren Buffett took a different approach. Known as a value investor, Warren Buffett's buy and hold strategy turned many of his shareholders into multi-millionaires. Richard Dennis, on the other hand, used commodity options as a way to trade himself to wealth.
All of these men are considered professional traders, yet each has his own way of doing things, his own strategy for protecting himself from loss, and his own variety of success in trading the markets. It's a lot like professional sports. In professional sports there are no two players that are just alike. You can point to two athletes in the same sport, with similar size, strength, speed, training, and ability. While both are professional athletes and can become hall-of-famers, it could be for entirely different reasons.
To be successful you must explore the three common types of traders -day, swing, and position traders-and delineate the advantages and disadvantages of each. Then you must look at whether or not being a trader focused solely on time is a realistic option when attempting to mimic a professional trader interacting with the markets.
It is important to first spotlight the necessary components found in a successfully designed trade: entry, loss target, and profit target numbers. Second you must look at the daisy chain interaction of the cash, futures, and options markets. This sheds light on why each of one the approaches works or doesn't strategies work. Finally, you have look at the essential trade setups quantum ai tradingof trends and counter-trends and explore them in depth.
Every type of trader can benefit from analysis of these three ideas and achieve their end goals. The value comes from not attempting to blindly pigeon-hole yourself into a specific type of trader when you lack a realistic understanding of what you are getting in to.