I heard a guy use the analogy of a 3 legged milking stool to describe a successful business. If any leg was missing or weak the stool falls over. In this instance the legs were 1. Marketing 2. Finance 3. Technical know how of the actual business. If trading is a 3 legged milking stool, what are the legs and why?
Execution Capital Good Analysis/System "edge"/positive expectancy Confidence to trade Good soft/hardware/platform backup/infrastructure Not necessarily in any order, but I guess this stool has more than 3 legs.
It's arguably the same: 1. Marketing = charts/data/indicators Finding pent up supply or demand is the name of the game. 2. Finance = trading account/money management A given. 3. Technical know how = your system 'System' is used broadly here and includes all of the psychological aspects of applying a system too. JT
Alexander Elder talks about 3 legs of stool to be a successful trader: psychology, technical analysis, and money management.