To: TFF who wrote (887 ) 11/9/1997 1:05:00 AM From: Timelord Read Replies (1) | Respond to
irby: Actually, these books and the traders involved do commodity options, even more confusing than stocks. Like you, I have no interest at this point (maybe never) in getting involved in either type of options, as I feel I have enough of a challenge just learning how to trade stocks properly. I don't even get into shorting yet. Having said that, I read these books because they examine the psychological and mechanical aspects of "great" and successful traders. What makes these guys successful, where so many fail? These lessons are "universal", and apply just as well to stock trading as they do to options trading. A trade is a trade, regardless of the market. comfortable for you (someone else's system never works); you must be confident and trade in a positive state of mind; you must understand money management and risk control; you always take personal responsibility for your trades (this is a toughy - always easy to blame the market or the MM or the news, but the decision for the trade is yours and yours alone); you understand the difference between taking a loss and losing (taking losses is a necessary part of trading, losing is something you do when you gamble); you understand the psychology of the market. He's very clear that you have to have your mechanics down cold before you can get into this "zone", but something about his writing style and his approach clicked for me and it changed my whole approach to the market. Change is good. I may never hit the zone he talks about, but I'm busy trying to learn TA and developing a sound trading strategy - and my attitude has improved 100%.
