Sell and Sell Short
Chapter One
How to Buy
Successful trading requires confidence; but, paradoxically, it also
demands humility. You must realize that the markets are huge and
there is no way you can master everything there is to know about them.
Your knowledge of the markets can never be complete.
You need to specialize in a certain area of research and trading. You
can compare financial markets to medicine; a modern physician cannot
be an expert in surgery, ophthalmology, psychiatry, obstetrics, and
pediatrics. Such universal knowledge may have been possible centuries
ago, but the modern field of medicine has become so huge that
all physicians must specialize. They must choose one or perhaps two
areas and master them. Outside of those areas they need to know just
enough to avoid trouble.
THE THREE GREAT DIVIDES
A serious trader needs to specialize just like a serious physician. He
must choose an area of research and trading that appeals to him. Here
are some of the key choices every trader needs to make:
Technical vs. Fundamental
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