Blog ~ The Forbidden Fruit of Trading
Now, let’s speak a little about “trading methodology” or how good is good and bad is bad! I have recently read a post (http://www.eminiplayer.com/2009/06/learning-to-become-successful-trader.html) about a guy that became trader after reading 30-40 books about trading and he became profitable from the first month. (Guess what I’m listening “Pink Floyd…We don’t need no education”, just a coincidence maybe…). Could it be possible? A good education makes you a good trader? How many times you have read about not doing this, or not doing that in trading?
Can you look in the mirror and swear it that you try only to do the right things every single time? Don’t you ever cross the line consciously? I think more important is to be honest with yourself and admit the stupid things you made it than tell me some trading axiom which you want to follow. It’s like going to a shrink. You don’t go there to tell him how a better person you want to be…, no you go there to tell him the feelings you had even those feelings were: shame, guilt, rage, envy, etc. In other words, as in the forbidden fruit story …can you tell me if you like/dislike a fruit only about the color or their chemical composition? No, you have to taste it; you have to do wrong things. It’s nothing bad in it. Trading is the place where what’s wrong for you could be good for me. This “not to do axioms” only limit your possibilities to experiment and learn, and paradoxical to keep you away from knowing what are the real things that are wrong for you. How can you avoid something if you cannot recognize it? Here I have to remind you the site motto: “When you learn what not to do in order not to lose, only then can you begin to learn what to do in order to win.” Edwin Lefevre, Reminiscences of a Stock Operator. Once I had a fellow trader who had a good market reading, and a good vision of trading, maybe the best among us. He also learned market analysis and had a good understanding of market activity. When argue about following basic trading principles, which I was a big fun like a “first grade pupil” who wants to be in line with educational demands, he told me..:” NO, NO MAN,….NO …YOU MUST LOOSE, you can’t learn without loosing, and you have to lose big time, otherwise you will not learn it”. First I thought he was crazy, and then I looked at Mark Douglas story and rethink. I don’t know if the correct way is “big time or not” but I’ll cite a Buddha teaching: “…but begin from this bank (your human nature). Do not begin from the other (the divine), where you are not. You cannot begin from there. Begin from where you are, and the more you will go deep, the less you will be. The more you will know yourself, the less a self you will be.” …pretty enlightened stuff right?!
I think the same is in trading: begin with wrong things, wrong attitudes, acknowledge it, do not be afraid of your “human legacy”. Only after you are conscious about your behavior you may evolve. Trading is an activity against human nature from a psychological point of view. What makes you think that reading 10-20…50 books you will know what is good or bad for you? I know that there are poisons fruits or mushrooms but can you tell me how an apple taste without eat some of it?
They say “don’t be emotional …blah, blah” but do they start trading from a cyborg stat of mind? So, what am I saying is that there is hypocrisy big time in the trading educational arena. I don’t trust “teachers” that tell me what to do or not do without telling me their first mistakes.
I will end this with a line which I read it after writing this post if you believe it or not: “Trial and error are essential o the learning process; we learn by doing, no thinking. Be patient with your failed efforts along the way, but never lose sight of the goal” ~ “Mastering your inner game” David R. Kauss.
The main thing is that don’t fall into the trap of thinking that there is a person/book/method, who can teach how to trade, you will lose time waiting for some book or guru to spark the light in you. You must fall and rise for many times in order to realize what is the best for you. Nothing can replace that!