Читать книгу Market Trading Tactics - Guppy Daryl - Страница 4

To trade or not to trade is the basic question. But is profit the only answer? Many novice traders think so.

Experienced traders learn that trading is the aggressive management of risk made possible by understanding the process of finding, exploiting and managing trading opportunities, financially and mentally. Traders regularly journey into the market jungle to mine nuggets of opportunity, returning with them to trade for profit. Successful traders understand the landscape and risk, and are properly equipped. The novice, equipped with little other than enthusiasm and a dream, walks into the jungle with an eye fixed on profit. Lacking tactical survival skills, few return.

The client casualty lists from brokerages fill pages with the names of those who thought profit was the only answer, and failed. This book is for survivors. If you want to keep your name permanently off the casualty list you must equip yourself with the best prospecting equipment. Simply aiming for a profit is not enough.

To protect profits and minimize losses you make better use of your tools, use your time efficiently and listen carefully to the roar and whimper of the market crowd. Like Ulysses, who wanted to hear the call of the sirens but avoid being lured onto the rocks, we consider ways to listen to the siren call of greed without coming to grief. We look at how to identify trading opportunities, some methods to analyze only the most promising and how the supplementary numbers from the market are used to confirm the promise of profit.

Later we examine some ways to detect the sound of distant thunder as the crowd stampedes through the marketplace. The market is a master pickpocket and while profit beckons, failure has its hands in our wallets. How much it takes depends on our trading tactics.

This is a prospecting expedition into the market jungle and before taking the first steps we require some understanding of the landscape. What strange shapes await us, what unusual growths, what behaviors? How will we measure and judge them against our own experience? Do we equip for snow, sand or dense foliage? The answers decide the tools, the protective equipment and the way our expedition travels. Consider this first section as an expedition briefing for a land seen but improperly understood.

Our chosen landscape is peppered with probability and shape is delivered in bar charts. In this landscape lie the nuggets, so it pays to spend some time exploring these conditions before stepping into the market jungle. You could skip ahead and start the expedition immediately. When you decide you cannot make sense of the jungle shapes feel free to return to this expedition briefing.

Successful trading means having the balance of probability on your side. Good trading is about achieving financial objectives. Later we will look at some specific ways to identify this balance, set financial objectives and control risk by tilting the balance in our favor. Before doing this we need to renew our acquaintance with probability, and later with the way this appears on a chart.

You cannot control the market, but you can control your entry into the market and your exit from it. Successful trading places these control points near levels of greater probability.