Whether you’re trading the share market, futures marketplace, or any other investing venue, a trading philosophy is critical since it will dictate how you make trading decisions. A bad philosophy will inevitably lead to bad long-term results. An excellent trading philosophy will most likely lead to good results, if you combine it with discipline and patience.
The definition of philosophy is the love of, or the find, wisdom or knowledge. It also means the general guidelines or laws of a field of knowledge. That being said, I will share with you a number of my philosophical thoughts on investing, and general guidelines that should be followed for achievement in the world of trading.
Investing is one of the most complicated endeavors you will be able to attempt; on the contrary you’ll find great riches for those who turned into elite. Not only do you should have a prosperous philosophy, formula and guidelines, you also must understand the proper psychology of investing. This usually means going against constant human nature. This is the psychological part of trading that separates the fairly great investor from an elite investor. It requires a lot of years of correct trading education to be successful in the long run.
When I first started investing, I, like everyone else, did not do well my first few years. I thought it was going to be simple. I could only read a book or two, buy a few secret indicator or formula, and simply like that, I will be a good trader. I also tried numerous advisory services. I still was not a successful investor. My problem was, I had no foundation of real trading knowledge, and I certainly didn’t understand the psychological part of investing.
In the early 1990’s, I finally figured out I needed a successful investing philosophy, to develop my foundation of investing knowledge around. I studied many of the world’s greatest investors. This included William J. O’Neil, Jesse Livermore, Bernard Baruch, Gerald Loeb, Nicolas Darvas, Richard Dennis, W. D. Gann, Jack Dreyfus, Amos Hostetter, and others. I determined out they all exchanged with the trend. They were for the most part, trend followers. I based my investing philosophy on exactly the same premise as several of the world’s greatest traders.
My investing philosophy is that marketplaces from time to time make big moves. The big cash is created trading these enormous moves. I learned this from researching the value and amount action of the share market, and the commodities market. I trade with the trend. The secrets I implement are my particular guidelines I follow when investing. They flow logically from my investing philosophy, which is to trade with the trend. I’ve exchanged efficiently for a long time, but it did take too much time and effort becoming a prosperous investor.
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