Models of market success

It was written many books on the topic. However, it is unclear as experienced traders are making their impact. Several explanatory models implicitly seen in these publications:

1) the psychological model - a market success, according to this model, depends on the self and the psychological state of the trader. Successful traders do not necessarily have the best trading practices, or what some secrets, but the ordinary method more consistently, with less emotional involvement, and therefore better management of risk. The development of commercial success is a function of development in this model.

2) scientific model - according to this model, successful traders are obtained primarily as a result of continuous and deep study. Markets show patterns of cause-effect interdependence, which over time changed. The role of research in this regard, is to reveal these patterns and trade with them. This model, in a sense, is the antithesis of the psychological model. This model assumes that as soon as you discover any inefficiency in the market, it can be incorporated into the mechanical system, which eliminates any concern for the human elements of the trading process.

3) a model to understand the hidden structures - the model emphasizes that success in the market depends on understanding the market. On the market there are some graphics and other formations that have not changed over time, but they are not necessarily visible at first sight. The role of the professional trader is in the right rasshifrovyvanii and application of these universal structures. This is not so much connected with the function of research, but with the experience. Such approaches to the trade as an image formation, Elliott Wave Market profile or not a systematic approach to trade, but instead rely on the skills of a trader on the interpretation of such market structures.

4) model of execution - in this model, trade is seen as an activity associated with a specific performance, like athletics. Successful trading can be decomposed into components of the skills and abilities that can be worked out and improved by intensive training and practical application. The result will be less connected with any research or the ability to interpret the image formation, but mainly to the ability to perform fast, in other words from the perceptional and motor skills.

No doubt each of these models has some elements of truth, and very likely that all these models are part of what is associated with the notion of success in the market, not much different from the descriptions of the elephant by the blind men in the famous parable (when they were given touch different parts of an elephant). The first and fourth models are concentrated on the quality of the trader, while the second and third models are more related to the basic qualities of the market.

In a sense, these models are like lenses, which are of traders to form their attitude towards the market, depending on how they view the world and, with the priorities of that for which they work. They reflect the deep structure of beliefs about the nature of the world: whether the validity of fixed-line, thus ensuring that it can be to reach universal formations or whether it is fluid, helping to ensure that it can be covered through a constantly ongoing research is a clear knowledge of t . f. obtained through the psychological reflection or implicitly - is reflected in the performance.

As the market success of these models are based on our fundamental understanding of the world, I suspect that they are much less amenable to modification than is usually presented. The researcher will feel not quite yourself with Elliott wave theory, not because of any objective evidence that the researcher finds flaw as adherent Elliott waves on the contrary mnogoznachaschim, but because the very notion of a fixed, stable reality is not consistent with his vision, which stresses the dynamic relationship . Trader who is considering trading in terms of correct execution of the idea that success depends on the psychological state, not just perceived - unless you can become a good surgeon, through the inner self?

Perhaps, is different from the unsuccessful not because of the superiority of one model over another, but because he found a model for their professional development, which is consistent with his inner personality, outlook and life experiences. Unsuccessful trader may lack in the consistency of a model as a whole - impulsively moving from work on a work on the market, from market research to change the interpretation of the universal market formations. Or unsuccessful traders may follow patterns which are in conflict with their domestic individual characteristics and life experiences, as in the case of the intuitive man, who is trying to bind their trade with mechanical schemes.

In this sense, a model similar to religion - may be many paths to spiritual growth, but must find its own path, which corresponds to you. You can not be a devout Christian in a day, practice of Zen Buddhism to the next, and be orthodox Jew to the next. Before you ask different questions about the opportunities in the market, or what kind of training is needed to trade on the basis of this feature, you can start otshlifovyvat his own view and to formulate a plan that will contribute to your success.