Education in trading strategy is based on programs of technical analysis, money management and trading psychology. But it includes more practical skills that will follow the students of the Californian Institute of Trading in their professional daily life: when one takes their position in the market, at either a high or a low, one must choose between the “put” and the “call”. This skill is therefore complementary to technical analysis, except for this is merely goes back to choosing and acting on intuition. However, when a psychologically prepared trader is armed with a mastery of technical analysis and money management, the application of strategy may prove to pay well.
This skill has long been neglected by market finance schools, which prefer focusing on more technical and attractive disciplines, such as technical analysis, money management and financial mathematics. Even so, this is no longer the trend; today strategy is used in complement of psychology and other technical disciplines, because it has been shown to be just as effective.
If we can distance ourselves from our emotions, we can base our actions on strategy, based around our personal experience and reasoning. Some surprising strategies that have proven to be incredibly effective, such as that of the “turtle traders” in the 1980s, have become sorts of living legends. Today, the former “turtle traders” continue to influence stock market professionals, in the footsteps of Curtis Faith, who wrote a trader training manual and has given numerous interviews on his strategic vision and the evolution of trading. Commentaries on “turtle trading” strategy are given in one of our recent publications, as well as in the writings of ‘turtles’ who wish to reveal their methods to the greater public.