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Options - By Paul Forchione for July 31, 1998
FNet Mentor http://www.futures.net/trading/full-bio-paul.html
Do you know the best kept secret in the trading
community? It's that THERE IS NO secret. Believing
there are people who can regularly "outsmart" the market
is a lie that reaches into every corner. Everyone's entitled
to their guesses and opinions about what the markets are
going to do, but these prognostications should be
accepted for what they are -- guesses and opinions.
Experienced traders operate under the premise that there
is no substitute for risk control and money management.
These are big subjects and indispensable elements of a
well constructed trading plan. But that's like telling
someone the key to health and longevity is eating a
balanced diet and exercising. It's not "sexy" and it's
obvious, so no one wants to hear it. Instead, everyone
wants an esoteric explanation, a secret that "strikes their
fancy" and that's known only by a select few. There's no
changing human nature, but as traders we should strive to
implement a trading plan with components that serve us
well as opposed to searching for secrets that don't exist.
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