Many traders relate trading to “Poker”. I have read it a thousand times since I started my market adventure. Still I do not know what this Poker is all about.
I always felt, trading is like driving a car. Everybody start learning it the same way. We learn rules and regulations familiarize with the controls and deliberately practice operating them. But knowing all these won’t make you a driver. To drive the car with confidence, you need something else. What it is?
It is called “Road Sense”. It is something that we acquire by experience. Level of road sense differentiates an excellent driver from an average one. I do not know how to define road sense. It is simply our ability to assess ourselves and others around leading to good judgments and driving habits.
Good judgment of the situation will help us to avoid trouble and accidents on the road. This involves understanding the behavior of other drivers, assessing our own strength and weaknesses, controlling situations and avoiding risks.
Trading is not different. Knowing all the patterns and trading tactics is not going to work unless you develop “Market Sense”. But it takes time and experience to develop. Unfortunately most of the people won’t stay that long. They will simply quit or flirt to some other method.
If you are really serious about your trading, select a method with a positive expectancy and stay long enough to develop this Market Sense. Your first priority should be the survival during this learning curve.
Anyway, start learning Poker and Golf. Traders are supposed to play these.!!!!!!!!