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I'd just like to
take a moment to share my trading philosophy and to hear what yours is all
about, if you will be so kind as to indulge me.
I think of my trading style as
patiently predatory. Let me explain. If you watch the Discovery Channel or
National Geographic type shows a pattern quickly emerges whenever large
predators are featured. It does't matter whether it's a show about lions,
crocodiles, or killer whales. The most impressive predators hunt only when
they have great odds of making a kill. The killerwhale goes for the baby
seal in the surf. The lion attacks the young gizzelle. The crocodile eats
the unsuspecting and virtually immobile, swimming baby water buffalo.
I think of myself as a bullish trader. I do not short stocks. I make my
money by going long on a trade. I'm not talking about going long in the
traditional sense. What I mean is going long in the sense that you buy at
one price and sell later (10 minutes, 1 day, 1 week, 2 weeks max) at a
higher price.
Since the market is about bulls and bears, locked in a constant struggle
for victory, I see myself as a strong and patient predatory bull. I must
do battle with the bears but rather than take on an angry, fresh and
energized grizzly for a long duel, I prefer to attack a bear that has been
fighting for a long time and has grown extremely tired. Like Sun Tsu
reccomends to his generals, once the opportune moment presents itself
(i.e. once the bear is bleeding and exhausted from his bout with other
bulls and is about to collapse) I explode toward him from the brush with
great power like a violent bolt of lightning! He has almost no chance of
defeating me. Were the playing field even, he could destroy me but because
I have waited patiently in my search for a weak and tired bear on whom I
can feed (profit from), I will be the victor.
This very simple philosophy took me 4 years to discover, develop, and
confidently execute. This is why I am the proponent of the bounce play.
The strength of the bears can be gauged by taking into consideration
factors like, support, resistance, volume, the rsi, the stochastic, the
cci, bollinger bands, fib retracements/elliot waves, and moving averages.
Whatever tools you use, learn how to put your finger on the pulse of the
enemy to assess its status and then have the discipline and confidence to
attack with full commitment. As Henry David Thoreau states, if we are to
be successful, we must "advance confidently." I have garnered
confidence through seeing my philosophy work for me time and time again.
After you do that, you will then need to master the incredibly difficult
task of seizing the spoils of the battle of which you are the victor (you
must learn to take your profits) before the hyenas (other traders) take
them from you. But that is a discussion for another day.
By:
rob
rens
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