CHAPTER 6Trading Strategies That Fit the Big Picture
For every dollar added to [America’s] GDP, there are now 4 dollars added to indebtedness. This is the worst performance in terms of credit expansion in history and of course in comparison to any other country.
Dr. Kurt Richebächer, Economics Lecture, November 2005
When I wrote the first edition of this book, I left out one style of trading that I called mental scenario trading. My experience of it was that it was an art form practiced by some of the best investors and traders. For example, I would describe Market Wizards Bruce Kovner and Jim Rogers with the label “mental scenario traders.” And the best way I could describe what they did was to say that they kept up with everything going on ...