In order to be a Master Trader, there are 3 things you need. They are as follows:

1) Technique

The ability to determine the direction of the market at a glance, and knowing how strong of a movement the market is in at any given time.

2) Strategy

Strategy refers to the structure (trading strategy), you will use to accomplish your goal.

3) Tactic

The Tactic is the exact strategy you will use to reach your financial goal.

I want you to imagine for a moment that you are standing by the side of a raging river. As you watch the river, you notice that it is moving with a lot of power, strength and velocity. Given the strength of the river, any structure you throw into that river, be it a foam cup, or a bamboo raft, will also go in the same direction of the river is flowing.

The most important aspect of being a Master Trader is technique. That is, having the ability to determine at a glance the direction of the river and knowing how strong the current is. Similarly, once you have determined the direction of the market, whatever strategy you through at it is probably going to work, regardless of the strategy implemented.

The key here, is to develop and master the technique of determining at a glance both the direction and velocity of the market at any given time.

Only after you have determined the direction and velocity of the market, are you then able to determine what strategy will give you the best result.

Sticking with our analogy of the river, once you are able to determine the direction that the river is going, and how fast the current is, are you then able to determine the tactic you should use to get across the river. Do you need a cannoe or a high powered speed boat?

When we refer to tactic, we ask the following questions: How many accounts am I going to trade? Should I use a trade copier? If so, do I use it on all of the accounts, or just one or two? What trade size should I use to accomplish my immediate financial objective? Again, these questions have to do with tactic used. Tactic refers to the “how” in accomplishing your financial goal.

Technique has to do with the direction of the river (market), and how fast it is moving. Strategy asks, “What am I going to use to get across the river? Tactic asks, “How exactly, am I going to build wealth”? In other words, do I use wooden paddles, gasoline, or jet-fuel to cross the river? Or as it relates to trading, “Should I use a trade copier, trading multiple contracts, or going for more points.

Master these three things, and you will be well on your way to becoming a Master Trader.