Boss Battle Trading
Ah Ha! I remembered what I wanted to say. I was talking to my kids about the stock market and I had a metaphor for the market and how it is very much like playing a game. I don't remember why we were talking about the stock market but somehow the topic came up and I think one of them said that it sounds like a game and I thought, "well, yeah, it is." It's referred to being like a game in many books by many people. And I think as a trader you have to think of it as a kind of game too. There is money on the line, yes, but if you get too caught up with $'s then you will not be playing the game correctly. Anyway, I explained to my kids that it's much like a video game and even more specifically a boss battle in a video game. You see, in many boss battles, the boss has some weakness. Most of the time they are invulnerable until they make some certain movement that is the weakness moment where you have to make a certain move and pound away at the boss in this short opening. And then, run away until that next opening. You wait, dodge, and then pounce - hitting away when that opening shows up and then repeat the process. This is so much like the market. I've heard of the market being like a cheetah hunting it's prey where you are the cheetah and he prey is the injured animal that is easily chased down, but there's lots of hunting going on and food can be few and far between. I like the Boss Battle situation better because it really emphasizes that you need to be out of the way when it is not time - when you don't have a catalyst, setup, or trade. But when that opening shows up, you better be swinging or you're going to have to be dodging a while longer for another opportunity to show up. Luckily, just like in the game, the market gives us opportunities all of the time. So there you have it. Find the Boss' weakness and which actions to take and go to town. Cheers!
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