Unknown Market Wizards: The best traders you've never heard of

Novice traders should caution against the securities-based bias of trading only from the long side. In futures trading, there is no distinction between going short and going long.24 Since prices can go down as well as up, the trader who takes only long positions will eliminate approximately half the potential trading opportunities. Also, it should

The basic assumption of technical analysis is that prices exhibit repetitive patterns and that the recognition of these patterns can be used to identify trading opportunities. Technical analysis can also include other data, such as volume, open interest, and sentiment measures.

same thing too, and the point spread is probably too wide. The concept that a market’s discounting mechanism is based on speculator participation, not price, is the most important thing that I know.

futures markets are still commonly, albeit erroneously, referred to as commodity markets, and these terms are synonymous.

analyst uses economic data (e.g., production, consumption, exports) to forecast prices. In essence, the fundamentalist seeks to uncover trading opportunities by identifying potential transitions to significantly more ample or tighter supply-demand balances.

everyone is betting on one side, then the point spread will have to move, and it will probably move too far. In fact, I have a football betting system that looks at 30 guys who make picks versus the spread. When 25 or more of them pick the same team, which happens only about six times a year, the other team will win 80% of the time. Now, is that be

The fundamental

If I have any message to the world—and it is the reason I agreed to do this interview—it is to convey the importance of participation. Everyone understands that the market is a discounting mechanism. What they don’t realize is that the discounting mechanism is not price; it’s participation. It’s not that the price has gone from 50 to 100, and there

The moral is: Be sure you really want to trade. And don’t confuse wanting to be rich with wanting to trade. Unless you love the endeavor, you are unlikely to succeed.