Tuesday, July 7, 2020

Transistion - Reality

Unlike many other professions, trading can be more demanding and more challenging that requires your "flexibility, agility and decisiveness". We are dealing with a "living" and dynamic "creature". The non-uniform movements make it challenging to have 'fixed rules" which are rigid.

The academia approach to understanding market prices is rigidly static which only proves time and again that the practitioners fails and do not subscribe to understanding the cyclical nature of market. Classic financial approach will not anticipate the cycle although one might have the hunch or gut feel something is not right.

Ignorance or denial is most likely the factor that prevent the individual to seek the possible clues.

The skill and the art of reading market is not something can be taught like in classes where there is standard template to calculate. Trading is about trying to make sense of the movements. The behavioral trend and the position of the current versus the overall trend in progress.


The trading game like any other sports requires one to understand the game, the rules and the offensive/defensive moves. We are  dealing with a lively dynamic trend that moves at different strength and magnitude either in quick time or prolonged period.

The sea waves and tide is not the same every minute but the surfers will be able to surf because he or she is trained to accept the dynamic waves and tide. Trained to manage himself/herself against the wave since this is uncontrollable. The only thing that can be managed and controlled is the surfer decision and actions.

Over time, the surfer will be able to feel the waves by looking at the behavior and act accordingly. Similarly, the trader should be able to feel the market by looking at the charts  

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