Using intuition for trading the stock and options markets

Intuition for trading success

Intuition for trading success

I been involved in market trading since ~1996 when I opened my first brokerage account. After some lousy steps with funds and stocks I been introduced to options trading by our mutual friend. The concept of markets fascinated me – it’s the game where all cards are opened [all information you want is generally available] and yet it’s the most complicated game in the history of mankind to succeed in.

I wanted to study the methods and minds of the world’s most successful traders and was naturally guided to pick Jack Schwager’s series of “Market Wizards” books. I read his interviews with a pen, paper and bunch of bookmarks. I read these books probably 10 times – and each read was like a study for an exam. For each trader I highlighted the most important points, how he does everything, what his mind set is, what his education was, what was special about his life, how he started and how he defined and explained his own success. And of course how he picks securities, markets, stop points and all the good stuff I can squeeze from the information given by Jack’s books.

I ended up with 2 books looking like they been used in a pillow fight instead of pillows + about 200 bookmarks in each. I also ended up with the following conclusions:

  • Every successful trader defines his success in different terms.
  • Every successful trader explains his success differently.
  • Every successful trader has some “general” and some specific advice for others that sounds “ok” but has nothing to do with trading success.
  • Every successful trader will likely to succeed in any security and in any market. And likely he will succeed in many other tasks as well unrelated to markets.

On my quest for the ultimate answer on “what defines consistent success in trading” question – Jack’s books did not have one for me.

I love these books and they were lots of fun to read and study, but I had to look elsewhere.

Read More»