Why

This is a discussion on Why within the General Trading Chat forums, part of the Reception category; Originally Posted by starspacer Because it takes a huge amount of hard work and the help of other pioneers to ...

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Old Dec 3, 2006, 12:35am   #11
 
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Originally Posted by starspacer
Because it takes a huge amount of hard work and the help of other pioneers to achieve a ‘tipping point’ in trading whereupon mastery is attained. It is an iterative process and there are few shortcuts. Even Einstein had to undertake this ‘learning curve’.

Einstein's mother was concerned about his slow development as a child. His elementary school teachers thought that he was a foolish dreamer. His Uncle mentored him from the age of 12 and he increased his knowledge in calculus & physics. A trader would learn technical and fundamental analysis during the early stages and use a mentor to help with the psychological and financial development necessary to achieve mastery.

Eventually dropping out of high school, Einstein had to take special exams which he failed. After graduation, he couldn't get a job anywhere. In 1901, at the age of 22 he got a job at a Swiss patent office, and earned just enough money so that his parents didn't have to support him.

In 1905, Einstein examined the phenomenon discovered by Max Planck, according to which electromagnetic energy seemed to be emitted from radiating objects in quantities that were ultimately discrete. The energy of these quantities--the so-called light-quanta--was directly proportional to the frequency of the radiation. But it wasn’t until 1911 that Einstein was able to make preliminary predictions about how a ray of light from a distant star, passing near the Sun, would appear to be attracted, or bent slightly, in the direction of the Sun's mass. In 1915 he published General Relativity which was the ‘Holy Grail’ linking mass and energy.

So it had taken Einstein 24 years of dedicated work to achieve mastery. And that mastery was expressed in the simplicity of e=mc2. Trading is like this.
Yes, exactly, very well explained.

However you forgot to mention that in trading, as in everything requiring endeavour, also,
e= mc2.

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Old Dec 3, 2006, 12:33pm   #12
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Originally Posted by superfly
Why does the eventual accumulation of pertinent knowledge translate so slowly into one's trading results? If we are capable of weeding out the good stuff from the bad, why doesn't the good stuff just take over and guide us directly towards success?

Everyone trades the markets according to their beliefs.

Acquiring knowledge builds interest, but does not necessarily change those original beliefs.

You can tell a trader over and over again that they need to change certain trading habits to become successful, but unless that trader can incorporate what you are telling them into their belief system, they will not change the habits. People's minds become programmed in certain ways and it can be a difficult task re-programming.

Once people develop ideas and beliefs about something, it is very difficult to change them.


Thanks

Damian
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Old Dec 3, 2006, 2:39pm   #13
 
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Originally Posted by superfly
Why does the eventual accumulation of pertinent knowledge translate so slowly into one's trading results? If we are capable of weeding out the good stuff from the bad, why doesn't the good stuff just take over and guide us directly towards success?
Trading has a very long positive reinforcement cycle. Often you need to do the 'good stuff' for months on end to make money.


Most people expect to do the right thing and come out permanently ahead after 5 or 10 trades, in this business you might still be down or flat after 50 or a 100 trades even though you might have been up after the first 10 trades.

Last edited by donaldduke; Dec 3, 2006 at 2:45pm.
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Old Dec 3, 2006, 2:58pm   #14
 
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Originally Posted by donaldduke
Trading has a very long positive reinforcement cycle. Often you need to do the 'good stuff' for months on end to make money.


Most people expect to do the right thing and come out permanently ahead after 5 or 10 trades, in this business you might still be down or flat after 50 or a 100 trades even though you might have been up after the first 10 trades.
Yes quite so....

E = MC2

Effiort = More Cash to you Too.

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Old Dec 3, 2006, 6:11pm   #15
 
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Originally Posted by SOCRATES
Yes quite so....

E = MC2

Effiort = More Cash to you Too.

Nearly, but not quite Socrates.

As I explained recently in post http://www.trade2win.com/boards/showpost.php?p=292368&postcount=65

“the Master attains applause by either of two opposite paths.”

In this case the opposite of E = MC2 applies equally well.


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Old Dec 3, 2006, 6:21pm   #16
 
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Originally Posted by starspacer
Nearly, but not quite Socrates.

As I explained recently in post http://www.trade2win.com/boards/showpost.php?p=292368&postcount=65

“the Master attains applause by either of two opposite paths.”

In this case the opposite of E = MC2 applies equally well.


....For mainstream consumption that is....is what I meant..... ...I wholly agree with you.
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