In journalism, the Five Ws (and one H) are: WHO? WHAT? WHEN? WHERE? WHY? HOW?

The very questions a trader must answer in order to be profitable! “WHO?” is about the asset class or trading vehicle. “WHAT” is about the move. “WHEN” is about timing. “WHERE?” is, quite obvious, about the exchange - but can be less obvious if you mean exchange access (desk order, home broker or DMA?). “WHY?” is the source of the move, the reason behind it. And, finally, “HOW?” is the way it play itself (volatile or not? sudden or not?, etc). It’s clear to me that the work of a trader is very related to the work of a journalist. One difference: the trader has to answer the above questions BEFORE the events take place.





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1 Comment so far

  1. Gangineni Dhananjhay on November 12, 2009 10:27 pm

    Dear Newton,

    These simple yet very eloquent questions clarify the traders thinking. As posted in your blog the trade structure becomes evident with the help of these enquiries. This post struck me as highly relevant as I prepare to participate in a local Television in a discussion on stockmarket.


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