Proactive Vs. Reactive Trading by Adrienne Laris Toghraie
There are many different styles used by individual traders, some proactive, some reactive. Either can work and either can fail. Here's why.
One of the reasons why so few traders succeed has to do with whether their approach to trading is proactive or reactive. Which is a better approach? Do successful traders plan for and anticipate everything, or do they jump in without a plan, react to whatever happens and go with the flow? The answer may appear to be self-evident, but in fact, the answer is far more complex than you may realize.
Bill and Jerry are examples of the proactive and reactive approaches to trading. Bill was a successful lawyer who resolved to model his own success when he decided to switch professions and become a trader using the proactive approach. Starting out with a careful
business plan and a nest egg of $300,000, Bill immediately contacted several top traders and asked them for strategies that would expend the minimum of Bill's time while producing the maximum results. These traders suggested several seminars, books and
tapes. From this list, Bill was able to create a substantial library, selecting only those resources that would help him become the kind of trader he wanted to be.