There are two parts to being successful as a trader/investor. The part almost everyone focuses on is the analysis (aka method). The other part is one’s abilities as a trader. But of the two parts to becoming successful in markets, trading ability is by far the most important. I’ve known floor traders who have been wildly successful, but who employ a very simple method/analysis. And they know that. But they also know they wanted to focus more on developing their trading skills, rather than believing in a method. (Continued for subscribers.)
Risk and Rewards vs. Risk and Potential / Probabilities
The second we make a bet in the stock market, we’re immediately at risk. That’s all we know for sure. We have no idea if we’ll ever book any profits. Yet the profits are...