Marty says that the following elements serves as a foundation for building a trading methodology.
- Gambler with a good feel for numbers
- How to think
- What to think about
- How to perform under fire ( pressure )
- Money management
Your trading methodology has to fit your personality.
You have to understand your strengths and your weaknesses.
Your trading methodology has to fit your personality.
- Does not agree with suggestion that you need to be right three or four times out of ten if you cut your loss quickly
- Cuts his loss quickly but he takes his winners just as quickly
- Needs to be right seven or eight times out of ten
- Uses the analogy of a boxer-counterpuncher
- Cuts his loss quickly but he takes his winners just as quickly
Based on the first law of physics, an object in motion will continue in motion until an outside force affects it. A stock that is going down will continue to go down until it stops going down. A stock that is going up will continue to go up until it stops going up. So the new-high and new-low list is a great place to look for new ideas.