Fly Fishing the Stock Market: How to Search for, Catch, and Net the Market's Best Trades

CHAPTER 7

Fishing Seasons/Market Seasons

Fish behave differently depending on several influencing factors. Whether it is during spawning or active feeding, or whether the temperature is hot or cold, fish exhibit different respective and noticeable modes of behavior. Each seasonal characteristic requires an entirely different fishing technique or strategy. Certain fly hatches entice trout to the edges of streams where they continuously gulp duns off the surface. Entirely different hatches cause fish to feed on nymphs, more toward the middle of streams and deep below the surface. Fish adapt to their environment to survive, and they are good at it. If you simply cast any fly, in any way, on any day, you're not going to succeed.

Likewise, in trading, a successful trader must operate harmoniously and in rhythm with market cycles. Study, knowledge, experience—and a rough ride up the learning curve—will slowly but surely chip away at your reliance on luck and start stacking the odds in your favor, increasing your success rate. Two tools will help you adjust to the market's various “seasons” and “weather patterns”—the Weathervane and Weather Station.