Am I a trader or an Analyst?

People can learn a lot about life by observing nature’s creatures. Observations that can benefit every aspect of someone’s life.
In this Blog, we will be looking at the Cougar and how it hunts for prey. The Cougar is one of nature’s fierest creatures. When hunting for prey, a Cougar is very strategic. If a Cougar finds a herd of deer, it will wait patiently observing the entire herd looking for the weakness within the herd. The reason for this is that the Cougar can only run at top speed for short distances. Therefore, it is imperative to get as close to their prey as possible before making a killing strike. Otherwise the opportunity will be lost and it may be some time before the next appears. The more days the Cougar goes without food, the slower it will be able to run, thus making it harder and harder to attack its prey.
So why are we talking about Cougars?
Playing the market is very much like the Cougar’s hunt for prey. Whether someone is trading the Forex market, the Futures market, the Options market, the Equities market, etc, you must have a plan before entering each trade. If you don’t, it will be harder and harder to find opportunities because each lost opportunity will take a toll mentally, physically, and psychologically on someone’s well being.
Therefore, one must observe the instrument greatly before executing a trade. In another words, you must become an ANALYST before a trader. If you are a trader before an analyst then you will be “rolling dice” at each opporunities and playing a probability “game”. Just like the Cougar observes it prey for weaknesses before becoming a hunter, you must analyze before trading otherwise success will get further and further away.
An analyst observes the instrument PATIENTLY until an opportunity is seen. Once an opportunity is present, a plan is formulated and executed. The plan consists of entry criteria, money moneyment, etc. A true trader will not play a “probability game” but instead wait for the market to “show” them the opportunity through patience and discipline.
The greatest successful trader of all time, W.D. Gann, illustrated all these characteristics.
For EDUCATIONAL USE.    Commodity Futures Trading Commission, Forex, Futures, Equity and options trading has large potential rewards, but also large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provide d on the Blog is for educational purpose .

About the Author Manesh Patel