Trading: Art or Science?

[baby_swallow]

For me it's both..although its more of an Art especially if you are a short term trader...
Trading everyday is like a game of tennis - you need know the art on how to out do your opponent -make him commit errors for you to score.
Trading is also like going into a battlefield. You are pitting yourself against super traders, bots, (and the likes of TH). If you're lucky, you make a buck, if not, you're a carcass. Having a bit of knowledge about the "art of war"
may help - getting into the minds of your "enemies".

 

[Trembling Hand]

Plenty of people with horrendous foundations have made it big time.

To add to that plenty of people with somewhat average intelligence have made it big too. Especially in acting, sport, music, performance fields. Its been shown that grand master chess players have rather average intelligence. You'd think thats the same for traders too

 

[WilkensOne]

To add to that plenty of people with somewhat average intelligence have made it big too. Especially in acting, sport, music, performance fields. Its been shown that grand master chess players have rather average intelligence. You'd think thats the same for traders too

A book on trading I read said exactly that, people of 'average' intelligence often perform better as they can develop a strategy and if it works stick with it. Whereas those of higher intelligence apparently over analyse and find it too difficult sticking to a strategy without trying to constantly make it better.. thus not sticking to their proven strategy. I have no idea if it is true, but it was an interesting thought..

 

[tech/a]

Unfortunately an exception rather than a rule.
My experience has been that those in the less fortunate grouping of society tend to remain there.
Many now days collect the dole and play computer games.
Those that do get a job I have found by far have the mentality of Us V Them.
The have's wouldnt be there if it wasnt for the have nots.

Sure Average people can lead above average lives both in business and trading
but with a stronger leadership and examples set in child hood---I have found---tend to accept challenges more readily and excel in persistence and planning.

Im also speaking from my own experiences as a Son,Parent/Employer.

My father a Butcher who wasnt happy with one shop---had 7
My Son whos development I saw sky rocket around those leaders at Adelaide Uni and his friends. Now a Doctor of Physics.
Some of the Drop Kicks I have come through our place who last a day and are on 6 mths Work cover.---Bad back you know!
Yet 3 guys with me over 12 yrs who are without education but are specialists in their field. The sort of guys youd want in the trenches next to you! They always have a place in mine.

To me who started as a store boy
To my first business as a Lawn Man.
To today. Not bad for a guy with Leaving Honors which I had to repeat!
Buy I am an exception as I still know many I went to school with. Some sad sad cases and the odd WOW!

I can only speak from my experience and sure others will have experienced different things.

 

[pavilion103]

To add to that plenty of people with somewhat average intelligence have made it big too. Especially in acting, sport, music, performance fields. Its been shown that grand master chess players have rather average intelligence. You'd think thats the same for traders too

Agree with this 100%.

It's all about specialized knowledge and a focused commitment. Sure an intelligent person may get there quicker but someone with only average intelligence can put in the work to make up for it.

You don't need to know everything, or know it quickly. You just need to know what you need to know.

 

[pavilion103]

Agree with this 100%.

It's all about specialized knowledge and a focused commitment. Sure an intelligent person may get there quicker but someone with only average intelligence can put in the work to make up for it.

You don't need to know everything, or know it quickly. You just need to know what you need to know.

Of course this assumes that someone has the mindset where they can identify a successful path and stick at it.

Where does that mindset come from -- I don't know. I don't particularly care really.

 

[Trembling Hand]

Not sure what your point is there Tech. You are putting up counter arguments then counter arguments to your counter arguments. Clearly a majority of disadvantaged stay disadvantaged - thats why its called disadvantaged but,

An exception to the rule is proof that a hypothesis is incorrect. So your argument, at one point, being that it is up bringing is shot down by that fact that people with crappy up bringing can still achieve above average success.

Something else at play - or at least more at play than ingredient A plus ingredient B = cake.


Its more like a 10- 15 ingredient cake all mixed up with the possibility of even leaving out some ingredients while still coming up with a winning cake. Though I strongly believe that there are some ingredients that cannot be left out. For this there is empirical evidence.

Things that can be left out would be an interesting list......

Anyone?

 

[5oclock]

TH ,maybe its the "fight in the dog" not the "dog in the fight", which is sort of what you are saying.

 

[tech/a]

Not sure what your point is there Tech. You are putting up counter arguments then counter arguments to your counter arguments. Clearly a majority of disadvantaged stay disadvantaged - thats why its called disadvantaged but,

An exception to the rule is proof that a hypothesis is incorrect. So your argument, at one point, being that it is up bringing is shot down by that fact that people with crappy up bringing can still achieve above average success.

My experience is that a strong leadership at a young age will be a great help regardless of a persons standing but in particular those "disadvantaged" Dont know that the premise is shot down.

Something else at play - or at least more at play than ingredient A plus ingredient B = cake.


Its more like a 10- 15 ingredient cake all mixed up with the possibility of even leaving out some ingredients while still coming up with a winning cake. Though I strongly believe that there are some ingredients that cannot be left out. For this there is empirical evidence.

Things that can be left out would be an interesting list......

Anyone?

 

[havaiana]

Some 'deliberate practice' type tips:


http://sivers.org/book/LittleBookOfTalent

Two of my favourites:

TIP #15:
BREAK EVERY MOVE DOWN INTO CHUNKS

1) What is the smallest single element of this skill that I can master?
2) What other chunks link to that chunk?
Practice one chunk by itself until you’ve mastered it - then connect more chunks, one by one,
See the whole thing. Break it down to its simplest elements. Put it back together. Repeat.


#######
TIP #16:
EACH DAY, TRY TO BUILD ONE PERFECT CHUNK

Perfect - not just improve, not just “work on,” but get 100 percent consistently correct.

 

[ThingyMajiggy]

Whereas those of higher intelligence apparently over analyse.

I'm a genius in that case!!

 

[Trembling Hand]

Some 'deliberate practice' type tips:


http://sivers.org/book/LittleBookOfTalent

Two of my favourites:

TIP #15:
BREAK EVERY MOVE DOWN INTO CHUNKS

1) What is the smallest single element of this skill that I can master?
2) What other chunks link to that chunk?
Practice one chunk by itself until you’ve mastered it - then connect more chunks, one by one,
See the whole thing. Break it down to its simplest elements. Put it back together. Repeat.


#######
TIP #16:
EACH DAY, TRY TO BUILD ONE PERFECT CHUNK

Perfect - not just improve, not just “work on,” but get 100 percent consistently correct.

think this one is more important for trading,

TIP #9:
TO BUILD SOFT SKILLS, PLAY LIKE A SKATEBOARDER

Soft skills are the result of super-fast brain software recognizing patterns and responding in just the right way.

Soft skills are built by playing and exploring inside challenging, ever-changing environments. These are places where you encounter different obstacles and respond to them over and over.

Practice should be aggressive, curious, and experimental, always seeking new ways to challenge yourself.

After each session ask yourself, What worked? What didn’t? And why?

I like these too,

TIP #17:
EMBRACE STRUGGLE

The struggle and frustration you feel at the edges of your abilities - that uncomfortable burn of “almost, almost” - is the sensation of constructing new neural connections,

TIP #46:
DON’T WASTE TIME TRYING TO BREAK BAD HABITS - INSTEAD, BUILD NEW ONES

Ignore the bad habit and put your energy toward building a new habit that will override the old one.