Sunday 15 May 2011

The Holy Grail of Trading


What is the Holy Grail of Trading? A system or methodology that you can trade without incurring any losses and getting maximised profits. Is there such a system? I don’t know if it exists, maybe they do but I know of something that comes close. How do you like to know what the big traders are doing? Since these traders can potentially move the markets, do you not want to follow them? It is like trading with the insiders isn’t it?

Are they going long or short this week? If they are long, what is the size of the trade? Have they been long only this week or have they been long for the past few weeks? Is there a trend that they are following?

The Commitment of Traders Report or COT for short will tell us exactly that! I will explain more about the COT report in the next post.

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