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Trading Psychology  |  MAR 1997

V.15:3 (122-124) Scenario Trading by Ruth Barrons Roosevelt

Scenario Trading by Ruth Barrons Roosevelt Traders can get caught up in a scenario in which they believe the market will unfold. Becoming a neutral observer may be the best strategy. Scenario trading is trading in accordance with a dominant idea or story. It can be very dangerous— or it can make you a fortune. The scenario acts as an integrating theme and it can dominate your thinking. That theme could be fundamental, technical or personal in nature, and it colors your thought processes. And it definitely affects your trading. Scenarios are seductive. We are mesmerized by stories. We live our lives in the shadows and sunlight of our personal stories. Think about it. What is the story of your life? What is the story of your trading? Do certain plots repeat themselves with simple variations of people and place?

by Ruth Barrons Roosevelt

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