Great Video By "Market Wizards" Author

Just want to share a video by Jack Schwager who is the author of Market Wizards. This book is one of the most popular books on trading, and is basically a series of interviews with some of the world's best traders.I really enjoyed the video, it is filled with gems of wisdom and is pretty entertaining too, do watch it!

Here are some of the key points of the video:

• You must find a trading system that suits your personality.

• The curious thing about trading is that it is the only craft where an absolute beginner can step into and have a 50/50 % chance of being right.

• Trading should be effortless. The hard work comes during the preparation. It’s like a poor runner; he spends a lot of effort running, while a pro does it effortlessly. However the pro got there through hard work and preparation.

• Never listen to opinions.

• The best traders are very confident.

• Professional traders understand that losses are common, and have no problem taking them. Amateurs however want to get out even because it feeds their ego and their need not to be wrong.

• Patience is essential to good trading, wait for only the best setups and not over trade. Also, stay with the best trades and not get out too soon. The big money is in the sitting. We need patience both in getting in, and in getting out.

• A good trader does not have loyalty to his positions. He has immense flexibility and is able to switch his bias immediately.

• Trading is like a game to the best traders, they have great passion for it.

Great Article On Exit Strategy

Alright I seriously love discretionary trading because I believe it is the way to really get a feel of the markets and be a top notch trader. Even Alexander Elder noted that the best mechanical traders are often very discretionary. They may have a computerized system which generates buy/sell signals, but the signals they choose and the way they manage their trades are often based on their years of discretionary experience. Of course I must submit that discretionary trading is something amateurs will have difficulty with due to their more often that not incorrect assessment, and there will definitely be tuition fees paid to the markets for it. However I take it as a necessary part of progression to the next level.

This brings me to the point of this post. I've been digging into this blog for the past few days, and man there are crap loads of useful information in it. The owner Lance Beggs is a discretionary price action trader, and his methodology is partly VSA influenced too. I wanted to share some of his articles, but I realized there are so many great ones that my post will be flooded with links :P

So anyway almost everything Lance teaches really resonates with me, I find him very humble, genuine, passionate, and willing to share. I just want to share one of his free ebooks called "The Importance Of Exit Strategy" which is filled with golden nuggets of useful information and is very timely for me. It is about exit strategy, something which I'm really lacking in now. And I really like that his methodology of exits is discretionary and totally commonsensical.

It is a well known fact that most amateur traders focus on entries and not exits, despite the fact that exits are actually far more important that entries. I really got to let it sink into me. World class traders are up there because of their ability to minimize losses and manage a trade through its lifespan. I was also very blessed when I learned that our exit strategy has to fit our psychology too! Adopt a strategy we're not comfortable with and we'll most probably fail and get stumbled in the long run. Argh I've so much to say but its all written in the ebook, please do read it and all the other articles in the blog!