A Mental Exercise!

[Leth]

Can you explain in 10 words or less why and how you trade?

why = why you trade the instrument you do
how = your methodology (in its simplest form)

It personally took me almost a year to do this. But when i discovered my answer and more importantly realized the purpose of this excercise...it became my biggest AHA! moment. Everything then clicked.
The reason i said "my answer" is because there is no one answer..which is why this exercise is so constructive. (e.g. ive had someone do it in 7 words, i can do it in 9)

BTW....punctuation doesn't count as words

[Luvnrio]

Price and volume, cause of my capital.

Go easy, I'm a rook....

[Soverus Khan]

High probability setups make me money day in and out.

10.

[Alchemist]

ok

arbitraging stocks makes my life easier

6. ok doesn't count

[Leth]

Excellent answers..want to see more from other members as well.

Here is why and how i trade options in less than 10 words:

Leverage; Manage Risk, Buy Higher Highs, Sell Lower Lows

-thats 9

Remember, the more specific you can make your statement the easier it will be to think in terms of generalities.

Now the more important question is:
Why do you think this excercise is relevent? Again, answers will be different for everyone.

I'm going to let this run for awhile.

[Alchemist]

I would say the 10-word limit "forces" you to really think about WHAT you do and WHY you do it. It acts as a range, forcing you to keep bs reasons out. I maybe off here....

[newbie]

daytrading reduces overnight risk

4

[breakout]

so what was the explanation of this mental exercise, leth

[Leth]

Originally Posted by breakout

so what was the explanation of this mental exercise, leth

not letting the cat out yet....i want several people to play this out. the answer (which may or may not be different for everyone) may even come to you when you least expect it.

[HighBid]

Originally Posted by Leth

Can you explain in 10 words or less why and how you trade?

why = why you trade the instrument you do
how = your methodology (in its simplest form)

It personally took me almost a year to do this. But when i discovered my answer and more importantly realized the purpose of this excercise...it became my biggest AHA! moment. Everything then clicked.
The reason i said "my answer" is because there is no one answer..which is why this exercise is so constructive. (e.g. ive had someone do it in 7 words, i can do it in 9)

BTW....punctuation doesn't count as words

I look for the buyer and the seller.

I buy or sell when i see one of them working an order or when the futs start to pick a direction. I play market stocks I.E FSLR.BIDU.FWLT.ISRG or what is in play like MELI.


The time of the year also come in when i trade. Earning season 1st quater and so on. When there is news on a stock it is more difficult then lets say when the air is clear.