Anytime something is too good to be true, I now recognize that it probably is and that it is there for a reason because somebody knows more than me. Where I used to rush in, I now step back a wait for a move to develop. I don’t feel I have to be at the start of every move anymore. Money is always flowing somewhere no matter what, so I just have to stay attuned to it.
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Markets are changing all the time
You have to have the ability to change and see how the markets are changing and adapt to it. That’s a constant process. That’s why I think you see some people do well for four or five years and then just disappear.
History can be a useful benchmark but only if everything is put into the right context. Markets are dynamic and people’s reactions are different. It is much more subtle and nuanced than looking at what happened the last time.
Cristian Siva-Jothy
No setup works all the time and in all types of market environment. The success rate of any setup fluctuates in cycles – there are periods when it is high and periods when it is low. Most successful speculators have specialized in a small number of setups. The question is, do you change when the market dynamics change and do you adapt new setups or do you wait for the proper market environment to come back before you risk any money?
Discipline
If you don’t see anything, you don’t initiate a new position. You take risk only when you see an opportunity. Make it a habit to ask yourself for each trading or investing decision – do you have an edge or do you just hope to be right. Hope is not a strategy.