In the previous chapter, we established that there is no one path that will lead to success as a trader. This insight points to an essential element of trading success. If you get nothing else out of reading this book than the one following principle, it will still have been a very worthwhile endeavor:
Successful traders find a methodology that fits their personality.
So, while there is no single correct way to trade the markets, in order to be successful, you need to find the one way that is right for you—a methodology that suits your personality. It is the one thing that all the successful traders I have ever interviewed had in common: They all developed a trading style that was consistent with their personality and beliefs. This observation seems very logical to the point of even sounding obvious. You might wonder, “Doesn’t everyone trade in line with their personality?”
Well, actually, no, they don’t. Schwartz spent nearly a decade trying to adapt fundamental analysis to trading markets, an approach that was very poorly attuned to his personality. It led to tying his ego to his fundamentally derived market opinions. Speaking of this early period, Schwartz said, “Although I steadily earned good salaries, I was still almost broke because I consistently lost money in the market.”
It was not until Schwartz immersed himself in technical ...