Financial Literacy ---- Buzz word

Simple 2 words but subjective interpretations Is it financial accounting knowledge? Is it market in-depth knowledge (whatever that means)? or Is it the knowledge to navigate safely and profitably in the market?

The majority of the financial markets participants are mentally bias towards academic financial knowledge. Which often anonymously interpreted as Financial literacy. IF such knowledge is requirement to navigate safely and profitably in the financial markets, than all business school graduates SHOULD be millionaire. Unfortunately this is NOT the case. Fortunately this GAME is an opportunity for ALL to participate and exploit the opportunities.

IF one take the effort to read the profile of top Traders/Investors, there are many successful ones WHO DO NOT HAVE FINANCIAL BACKGROUND. This confirms that there are NO pre-requisites.

In my almost 38 years actively in the market, I can confidently say that THE KEY IS TIMING. IF one is able to decode TIMING and using simple technique(s), than one should NOT be distracted by PRICE. 

We all have the freedom and rights to have our own views/opinions. BUT if the timing is NOT right and ripe for the event to actually happen per our expectations than it is NOT going to happen.

I have my fair share of "sitting it out" until the price trend move in my favor according to my expectations.

Over the years I invested my time, mind and effort in harnessing the TIMING accuracy and appropriate ORDERS execution to ENTER and EXIT my positions. Last one year, I have been doing more STOP and LIMIT orders trailing the market instead of hit MARKET orders.

This is only possible after I have refine my own trend system that help me to read the trend cycle GPS state to identify the current position within the trend cycle. Once I can confidently conclude the status, I will plan my entries accordingly.

This GAME is NOT about the Quantum financial knowledge. It is about Trend, Cycle Timing. Unfortunately we don't learn that in academic formal class BUT fortunately everyone has to opportunity to learn INFORMALLY from the ACTUAL market.

One of the key terms I learnt as an under Grad pursuing my B. Agric Sc in UPM in the 80s is in-vitro and in-vivo. What works in LAB need not necessarily works in the FIELD. 

What we ace in Financial subjects need not mean we will ace in the actual markets. In fact there is a risk it can work on the opposite. Simply because academic excellence give us the FALSE confidence that we are invincible BUT market proves we are vulnerable.

I am incline to believe that there are 3 components to this game. 

1.MARKET Analysis (Trend, Cycle, Timing)

2.Financial Risk Management/Strategy (Funds allocation) and 

3.Mental Psychology (Fear, Confidence).

If one is able to strictly following a reliable simple RULE base system, than we can remove the (3) Mental Psychology from the equation.

In general, market crowd psychology is base on herd instinct and thematic sectors "play" is he buzzword. The trend direction is self propel and price is the leader. It is like a locomotive train head leading the rest of the coaches behind on the TRACK.