Monday, June 8, 2009

Win

  1. First, you need to play by the rule, improve yourself to be the best. You need to study day in and day out to find useful patterns, useful setups, cut loss quickly and take profit at the optimal time. This will build a base.
  2. To make real money, you have to take a calculated risk(sometimes, it's surprisingly small risk) to get great reward, that is, you play in a field, there is no rule, it's such a new field, you can almost just go there and pick whatever you want. But you have to be the first one, or second one to be there before everyone else, once there are too many people there, there will have rules and the profit will diminished quickly.
  3. Similarly, finding an edge in market, it has to be less crowded play, be the very first to be there, it's better to let smart people identify the opportunity, and you go in and follow them, get out before it's too crowded, and move to the opposite side. It's when to get on the train and when to get out make the whole difference.
  4. If you can break the rule while others follow the rules, you'll have great advantage, but usually the reason there is a rule, rule breaker will be punished for breaking the rule, unless it's a new field.
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