Over the years many attempts have been made to classify knowledge. These have resulted in many classifications. To make it simple there are two types of knowledge. Explicit Knowledge and Tacit Knowledge. In reality, all knowledge is a mixture of tacit and explicit elements rather than being one or the other.
Explicit knowledge is formal and codified. This can be written down, transmitted, and understood by a recipient. Such knowledge can be stored, retrieved, modified and discarded easily. Explicit knowledge can be taught very easily.
On the other hand Tacit Knowledge, sometimes referred to as “Know-How”, is intuitive, hard to define and largely experience based.. It is often context dependent and personal. It is very difficult to communicate and transmit.
The art of trading is a complex mixture of explicit and tacit knowledge. All the successful traders heavily rely upon their tacit Knowledge. It is impossible to convey this intuitive understanding gathered from experience and practice to a learner.
We will remain at a low point of the learning curve with limited tacit Knowledge development. Tacit knowledge is developed by facing challenges to transform ideas into practice. Without continued challenges our development plateaus
Most of the struggling traders focus only on the explicit part and ignore the tacit side. They may probably get “Reputation beyond repute” and win “Thanks” in trading forums but will never succeed as traders.