Knowledge and Success

Peter Borren

Active member
Apr 8, 2017
167
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28
#1
Trading knowledge is the core point of success! Which traders have good trading knowledge, they can make a decent monthly income quite comfortably! It’s a knowledge based profession, so which traders try to make money here based on their luck or emotions, ultimately they lose their capital whatever amount it is!
 

tomorton

Well-known member
Feb 28, 2002
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#2
Being a private retail trader is not at all like being a member of a knowledge based profession. Traders are running a small business, and their business ability ensures success, not the volume of knowledge they have accumulated.
 

gerryg

Active member
Sep 9, 2013
916
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#3
Being a private retail trader is not at all like being a member of a knowledge based profession. Traders are running a small business, and their business ability ensures success, not the volume of knowledge they have accumulated.
Trading embraces variety of skills, time-magament, analytical thinking, versatile knowledge. Basically earning in trading means being first in all aspects - information, technology, analytics, decision-making. Its a wild market where no rules and you battle with universal market mechanics - perfect competition.
 
Likes: piphoe

tomorton

Well-known member
Feb 28, 2002
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#4
Trading embraces variety of skills, time-magament, analytical thinking, versatile knowledge. Basically earning in trading means being first in all aspects - information, technology, analytics, decision-making. Its a wild market where no rules and you battle with universal market mechanics - perfect competition.

A good summary. To summarise further, decision-making ability with incomplete information trumps knowledge.
 

june_girl7

Active member
Apr 9, 2016
304
3
28
#5
Trading needs knowledge and skills both to work in the market. We have to be aware of every aspect of trading to be a good trader.
 

Brumby

Well-known member
May 25, 2012
600
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#6
The word "knowledge" seems to be thrown around a lot. It would be useful for those who believe in "knowledge" actually explain what that means and how it is actually important to success.
 

Peter Borren

Active member
Apr 8, 2017
167
2
28
#7
No way to ignore the importance of knowledge for ensuring successful trading life. but besides this we have to emphasis on money and risk management.
 

Quantt

Active member
Jul 23, 2017
945
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#9
It is like any other profession or hobby or life in general, the more you work on it, the more "lucky" you are going to get...
 

Peter Borren

Active member
Apr 8, 2017
167
2
28
#10
We know we have to be educative ourselves to ensure a profitable trading life , but we lost interest after passing sometimes , because Forex education is a long time approach. So, patience is needed first of all.
 

progix

Active member
Feb 25, 2016
199
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#11
Yes i admit that we learn more experience with each passing day however patience and discipline is required in every aspect of life if we wishes to succeed.
 
Feb 16, 2016
62
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#12
If you are a professional in something, no matter the field, you should have knowledge. Without that you won't develop and have a clear vision of where you want to go. The more you know, the more you want to learn.
 

SmartGeek

Active member
Jul 5, 2016
237
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28
#13
Knowledge and experience and skills are needed to become successful in the Forex Trading, thus you need to have a proper amount of practice to gain the same and which will lead you to become successful.
 

Pat494

Well-known member
Mar 27, 2004
13,031
1,219
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#14
All you need these days is a profitable EA and a computer.
When quantum computers become available they may be too accurate for markets to exist.
 

tomorton

Well-known member
Feb 28, 2002
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#15
This is all rubbish. There is far too much emphasis on knowledge.

In many fields, more knowledge leads to more salary. Its a pretty linear relationship which is exhibited in the hierarchical structures of such enterprises - think of medicine, or academia, or the law, or engineering or architecture etc. etc. The more you know, the more you are paid.

On top of that, the closer to 100% success should be your actual performance over a given time period. The most knowledgable medical consultants are not supposed to make the mistakes that a new ward auxiliary would make when assessing a patient's condition.

This is not applicable in trading. You do need to understand TA, how the markets work and at least some FA. But that's where the relationship falls down, because having 10 x the level of TA knowledge will not make you 10 x the profits.

In fact, possession of greater knowledge can lead to desire for greater information to support a decision., When this information is just not available, some people cannot make a decision at all. Traders must make decisions with incomplete information every day. Even incomplete understanding of what's going on.

And the win rate of a successful trader should not be expected to improve as they gain knowledge, there is no need. If your failure rate is say 40% and you double your knowledge of the markets, will this reduce your win rate to 20%? No. Because the failure rate is embedded in the strategy you are using and the losing trades are not mistakes. Those trades were correct decisions but the market, the uncontrollable, unpredictable market then did the less likely thing and went against your position. But no error on the part of the trader.

So please stop trying to make yourselves look clever by insisting that more and more knowledge is essential in trading. And please stop trying to make excuses for your bad trading by insisting that more and more knowledge would make you profitable.