TAKE WAYNE GRETZKY’S ADVICE
NOTE: So in two of my recent posts (HERE and HERE), I laid out the idea that obviously shorting has desirable benefits, but that it should be unusually difficult for most traders. Here is another thought that has helped me achieve/amplify the benefits of short selling, often times without shorting at all!
Sports are all about anticipation. Having played quite a bit of pond-hockey growing up, I know the physics of skating make it completely impossible to react to the puck coming towards you when you are flat-footed and standing still. Rather, like Wayne Gretzky’s infamous quote, you have to “Skate to where to puck is headed, not where its been”.
Traders, take note. Sometimes the best trades are those on the periphery; the less obvious, once or twice-removed reactions to an initial situation. Rather than trying to profit by reacting to a given primary negative situation, anticipate who or what benefits as a result and place your trade there.
The worldwide economy is a closed system. Capital doesn’t disappear. Anticipate where money runs to hide.
-Ström
