Tuesday, June 12, 2012

Magic Formula for Trading

The Magic
Let  us assume there is a magic formula to make money in trading. Let us also assume that I know of this magic formula. So, I share it with a few of my colleagues. They share it with a few others, who share this with some more traders. Soon enough, almost all traders are making money using this magic formula. 
Hey, wait a minute. If everyone is making money, then we must ask ourselves, where is the money coming from? Who is losing?
We can conclude that there is no magic formula. 
The Magic is inside you 
Trading remains one of the biggest challenges of life. We trade because we want to achieve something more than a nine to five job.
Trading is a profession at the highest level of human competence.
The reason we love trading is:
Not the Money
It is the human urge, desire or force to grow
Markets strike at the core of our competitive and adaptive instincts
(adapted from the book: Market Mind Games)

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