Successful trading is not an easy. Traders often look for a secret system that will hand them the keys to their financial success. But successful trading doesn’t require a particular secret technique but requires toughness (psychology) and self-knowledge (philosophy).
There are probably thousands of trading systems that work. But most people, when given such a system, will not follow it because it doesn’t fit them. One of the secrets of successful trading is finding a trading system that fits you. Every trader has to develop their own trading philosophy. It must be carefully fitted to his personalities.
Trading also has its different approaches: fundamental analysis, technical analysis, value investing, growth investing etc.
Investors spend decades searching for a successful system and they will find it by studying many approaches. The most crucial step is deciding what to trade and how to trade it.
There is more than one way to make money in the markets. But it’s only by understanding different trading styles that you can choose a philosophy that suits you. Buffett’s and Soros’ style very different. But both are among the most successful investors in history.
Sven Franssen