Be The Cheetah

I was reading the :"One Good Trade" from Mike Bellafiore SMB Capital today: the following words really made sense to me:

(Trading is about finding weak stocks and getting short at levels that offer an excellent risk/reward. Trading is about finding strong stocks and getting long at levels that offer an excellent risk/reward. Do not make things so complicated.)

(“The cheetah, while the fastest animal on the African plain and can outrun any of the prey it feasts upon, always chooses to go for the young, weak, or sick. Once identified, he/she attacks with laser-guided focus and effectiveness. It is only then that the kill is most likely. That is the epitome of a professional trader.”)

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I think,  be able to do the above mentioned, one needs to read the market properly like sensing the strength or weakness of the market before the market eventuates a likely move. it requires us to to read the tape or at least the candle sticks real time, and figure out the phychology on the spot.

trading is a timing business, we read a series of events and we interpret the meaning of them, timely actions need to follow, it can be either sit, or long or short with different sizes.

To sit means you know two very important things:

1. you know some moves don't belong to your trading dictionary, therefore you wait and give up those.

2.if you are already in a trade, there are sufficient reasons to stay in the trade, therefore you sit.

A hunting cheetah sits and observes most of time, when the weak target is chosen, it acts. another interesting thing is even if the cheetah fails in catching the pray, yes, the cheetah knows when to cut the loss, and goes back to the lurking position again quickly and find the next likely play.


Be the cheetah.