Seeking Alpha

Jay Norris'  Instablog

Jay Norris
Send Message
Jay Norris is a 20-year CBOT floor veteran, author of the Best Seller "The Secret to Trading Forex, Futures, and ETFs: Risk Tolerance Threshold Theory", "Mastering the Currency Market", McGraw-Hill, 2009, and "Mastering Trade Selection and Management", McGraw-Hill,... More
My company:
Trading University
My blog:
Seeking Alpha
My book:
The Secret to Trading Forex, Futures, and ETF's: Risk Tolerance Threshold
  • Successful Trading: Reinforcing Something That Works 0 comments
    Jan 9, 2014 12:45 PM

    One of the many misunderstandings about trading is if you have a successful method you need to keep it secret or it will lose it effectiveness. The truth is if you have found a successful trading method it is because that method is in-line with how markets are already moving. The more people that utilize that method the more the market traits that accommodate that method will become ingrained - and they are pretty well ingrained as it is.

    The market has an infinite capacity to support winning traders just has it has a bottomless capacity to support losing traders. The largest traders, primary dealers, may not be as profitable in their pursuit of taking the other side of every trade, but they will still be in business and there will still be a market. It is telling that the best capitalized traders, primary dealers, are not directional traders but market makers - they do not speculate on market direction; they take the other side of everyone's trades who does. On occasion they are put in a position where they have to "reset" a market -- temporarily reverse it and "run stops" -- to avoid being run over themselves during those times when the majority of speculators do get it right. But this is risky and exceptional behavior even for the best capitalized traders.

    Another great misunderstanding is market behavior "will change", which is the same as saying human behavior, will change. Short of a major temperature variance, or catastrophic plague, it takes humans longer than the average lifetime to significantly change their behavior. Most adults in fact can't change their behavior from how it was programmed when they were a toddler.

    No matter how good of a trading method someone puts in your hands, the older you are, the less likely you are of being able to replicate it with your own money. If mindfulness were easy we would all be enlightened!

    The relationship between traders and market is a two way mechanism. Successful trading comes down to taking advantage of what the market is already doing, which will reinforce that same market behavior.

    Jay Norris teaches at Trading University and wrote The Secret to Trading: Risk Tolerance Threshold Theory.

    Trading involves risk of loss and is not suitable for all investors!

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Back To Jay Norris' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.