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

CONCLUSION

In the good ol' days on the Henry's Fork of the Snake River, we could use two fly patterns, an Adams and a Muskrat nymph, both of which were deadly on any given day. Over the years, however, more and more fishermen have taken up the sport, which has put tremendous pressure on this fishery. The fish have adapted by becoming more selective. More delicate and sophisticated fly patterns have had to be produced to continue to fool the fish. Now, it is not enough to match the hatch. You must also master the presentation through deceptive precision, delivered on a finer tippet, requiring a feather touch. Failure to accurately execute in each of these areas narrows the chances of success.

In the stock market, gone are the days when you could plunk a handsome sum into any blue chip, wait 10 years, and cash in your fortune. There are many more participants, including, but not limited to, high-frequency traders, automated program traders, hedge funds, Internet traders, and international traders. There are new sophisticated tools, such as ETFs, options, and other hedging instruments. As a result, volume and volatility have dramatically increased, while profits for the small guy have become more and more elusive. All in all, these so-called progressive changes diminish your chances of success unless you have a carefully thought-out, tried-and-true trading system—reliable and repeatable on a consistent basis in any market season. Being successful in such a market is challenging, but ...