Wednesday, January 13, 2016

Three Stances towards Market

As you get more knowledge as a market participant, you go through three stages with different stances towards the market.

Agnostic stance - you think that market is some kind of a black box machine that will give you money if you press certain buttons in certain combination.

Aggressive stance - you understand, that there are actually real people on the other side of the trade. You go against them to win their money. You suppose you are better than them: smarter or more patient or more disciplined or more prepared.

Cooperative stance - you understand, that there are win-win situations on the market. Opening a trade, you provide some kind of a service to your opponent, by providing a liquidity or taking a specific risk you can handle better than an average market participant.

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