Self-direction, akin to insight, is the ability to understand and know the right course of action. There are few obvious answers in trading, and questions frequently arise. Good traders must develop a sense or feel for the proper course of action. They may not always be right, but they are willing to act on their intuition and are usually more right than wrong.

Should a technical or fundamental trading method be employed, or can they be incorporated into a universal approach? How do you know when to buy support for the next move higher, or sell support in the expectation the market is headed lower? How do you know when to change your trading method when the market has really changed, or continue with the same method and withstand the recent losses? Trading requires you to possess a keen insight into knowing what should be done, and, when the proper time occurs, to do it.

The ability to know when to change a strategy, or which trading method to use partly comes from self direction. It is not enough to learn all the trading methods and money management techniques. You must really understand the underlying ideas and be able to apply them in sometimes frightening and uncharted waters. No one can provide the "right" answer because it does not exist. Working in an unstructured environment requires that the individual have a sense of knowing what to do, or creating a game plan to succeed. Independent thought demands self-direction and the ability to know what to pursue and explore.

Trading does not necessarily require that you read many books on trading, but it does require that you write your own ''book'' and develop your own ideas.