Rock - Paper - Scissors …

17 Feb

Remember that game when you were a kid?

About now you're thinking he’s nuts what could this have to do with trading ?

To this end I have often though about trading in terms of a game of Rock Paper Scissors but with 4 components.

Fear, Greed, Profit, and Trading Plan

But be conscious that in trading fear has 2 components

1. Fear of loss – you won’t enter the trade and

2. Fear Of Missing Out - you won’t take profit or quit - that’s essentially greed.

and

Trading plans include trade management.

 Here are the rules of the game and think about these VERY carefully.

 • Fear beats profit

• Greed beats profit

• Fear beats greed

• Trading Plan beats Fear

• Trading Plan beats Greed

• Trading plan and profit are neutral they go hand in hand.

 Think about this for a second. Absorb it well for it may be the best analogy I have come up with for this. 

 What can you learn from this game ? 

 For me it is this: the only way to win this game is play Trade Plan / Management every time. 

This is how I deliver constant 3 figure percentage returns every year.

This is essentially what GANN was teaching ..

No plan - no sustainable profit .

Thats where we can help ….

May the GoFR be with you….