Monday, 27 February 2012

Knowing Your Business

One of the most important things in being a successful trader is knowing your business. Sounds simple, but what does it really mean?

Well, mastery comes with time. 10,000 hours they say. 10,000 hours doing the same thing over and over. Henry Ford worked that one out when he decided to build cars using an assembly line. Doing skilled work with less skilled workers.

My basic discretionary trading business is buying or selling at the 33EMA and covering at the outside keltner bands. Very specific and very simple. I do that over and over. After my 10,000+ hours I know my business. Having a very specific trading plan and sticking to it, doing the same trades over and over, developing that muscle memory, mastery comes.

Oil is the flavor of the day for me. All I needed to do was recognize the trend and trade the pullbacks. The news in the Middle East pushed prices here. I'm not convinced we can stay at these prices unless things really hot up in that part of the globe.

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