Monday, 31 August 2015

A lesson

Below is one of the lessons that was taught in the ongoing training program.

There were three big fishes living in a lake. Out of these three fishes, one was very intelligent.  Then one day a fisherman came there one morning to cast the net and catch the fishes. The intelligent fish said "I know what to do if the fishermen come and catch me." The intelligent fish thought of a way to escape.  It jumped out of the lake to the fisherman and acted as if it were dead. The fisherman threw that fish away in the pond thinking it was dead.  The other fishes tried to follow that intelligent fish and jumped out of the lake to the fisherman.  They simply followed the intelligent fish.  They did not know what the intelligent fish actually did.  So these two fishes did not know anything about holding the breath and acting dead.  They only jumped out and fisherman caught them and took them with him.

Moral of the story is when we follow someone, we only know the move that is made but we do not know why that move was made and what was the reason behind that move.

We need to become an intelligent trader and make sure we just do not blindly follow the move but we learn how and why that move was made and what was the reason behind that move.

Now I would like to ask the readers of my blog.  When you look at the chart on my blog or anywhere else, what do you usually think? Have you ever thought about it?  Are you only looking at the patterns that were traded?  Are you only looking at the success and failure of the trades that were done? Are you only following the trades and setups?  Have you tried to know the actual reason and thought process involved?

Ask yourself.  Are you only blindly following?  Are you trying to learn?

4 comments:

  1. Very well explained URD :)
    Also suggest everyone try simulation and trade replay to hone this skill before jumping into the arena.

    ReplyDelete
  2. Bhavir, Do you have or can you suggest any trade simulation software or website where I can replay the trades and practice ? Thanks.

    ReplyDelete
  3. Sourish

    Look at this, http://charttechnicals.blogspot.in/2014/07/replay-market.html

    URD

    ReplyDelete