Tiger and Trading

Posted by Howard
on August 21st, 2006

My friend at Anonymous Trader I am working on getting his name :) , has a great post on how to style Tiger’s strategy and execution to yours in the markets:

It truly was a funky cold Medinah for just about everyone not named Tiger Woods. By dominating the field this weekend to win his 12th major, Tiger solidified his stature as a role model not only for golfers, but for traders as well. Let me show you how.

1) Tiger set his sights on Jack Nicklaus’ 18 major victories as his ultimate goal. Traders should set lofty, yet achievable goals that serve to motivate and inspire.

2) Tiger is 12-0 when leading or tied for the lead going into the final round of a major. Traders should close out big leads, i.e. hard-earned profits, and not give too much back when things start to turn.

3) Tiger changed his swing several times while at the top of his game. Market conditions are dynamic and those who are willing to adapt their trading strategies and incoporate new techniques, regardless of past success, will ultimately prosper.

4) Tiger played conservative, error-free golf, limiting the use of his driver and scoring only 3 bogeys the entire tournament. Traders should be more concerned with limiting losses and preservation of capital rather than the reckless pursuit of high risk situations. Avoiding big losses trumps all else.

5) Tiger bounced back to win the last 2 majors after missing the cut at a major for the first time in his professional career. Traders need to be resilient when faced with adverse consequences as the next great trade could be just around the corner.

Pretty much perfect advice.

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