My Interaction with professional traders changed my Perspective on trading. Here is a quick summary of it!
I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times.
– Bruce Lee
Here is an old quote from a famous martial artist, Bruce Lee.
Bruce advocates for the mastery of a single skill through countless repetitions. And getting better at that skill every single time you practice it.
It is not surprising that this sage piece of wisdom applies to nearly every aspect of life. Stock Trading is no exception. The trader who is the most successful is simply the one who has mastered a single trading skill. But no one cares about how many trading skills one has but how consistent the profits and win rates were.
In the past, I have always believed that trading is akin to gambling and not worth the time and effort. It was mainly due to limitations in my mindset, and I have always been part of a defensive investing community that invests nothing more than index funds. I met a couple of professional traders in one of the fintech events, and my Interaction with them changed my perspective upside down. Both of them were certified, professional traders working for one of the big banks in Hong Kong.
Wait! Certified traders?
The very same question I asked. They were polite enough to introduce me to Chartered Market Technician (CMT) and their role at one of the global international banks. In simple terms, when evaluating security, one of the significant differences between an Investor and a Technical trader is that;
An Investor asks — Why is it happening?
A Technician asks — What is happening?
It opened up my eyes & they were kind enough to spend at least thirty minutes explaining their job and some ideas for implementation when trading in the markets. We discussed many other things, and I was short of pages to write down all the pearls of wisdom from actual market technicians.
To be consistent and successful in trading, one must learn the skill and practice it rigorously across various market conditions. Most people focus on making quick bucks than mastering the craft — which is the #1 reason why most people let go of trading within the first year.
Is Stock Trading Risky?
There is no correct answer to this question — but both Yes & No.
Risk comes from not knowing what you are doing!
So, if you have a proper strategy and practice the technique in actual market conditions, the risk will continue to reduce over time. The more one masters the skill, the lower is the risk.
As a kid, when you learn to ride a bike, the risk is higher, and thus, you need an adult to guide you. As you continue to practice and grow with experience, the risk reduces — this is the same when riding a bike or stock trading.
Based on the discussion with the professional traders — the repeated message that ring in my ears are;
- Choose a single trading strategy.
- Practice it several times in actual market conditions
- Maintain a trade log
- If the win rates are higher and profitable, you are good to learn more strategies.
Master one trading strategy and, as Bruce Lee said, practice it over 10000 times! Now, coming to WIBE, we intend to use technology and enable people to become consistently profitable when they invest or trade stocks. WIBE is not a stock advisory or financial advisory platform, but to make it simple, one can consider it a technology enabler for stock trading for specific proven strategies.
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