Just have this interesting thought in my mind that classifies traders into 2 categories.
Issac Newton
Discovered the laws of gravity from his experiences, such as an apple falling to the ground. Highly successful in his field of study and we owe most of the technology we are enjoying today due to him. However, he is unable to explain why is there the presence of gravity.
Albert Einstein
Also highly successful in his field of study. Further discovered that the presence of mass causes the dimensional space around it to curve and the extend of the curvature depends on the mass of the object, that is why we experience gravity. Improved Newton's formula (F=ma) as the accuracy does not hold for objects approaching the speed of light.
Issac Newton in Trading
Observe from his experiences in price movements to find something that is consistent in certain market conditions. Do not understand why it happens, but is able to deduce with a high degree of certainty that it is repeatable.
In Issac Newton's era, they do not deal with high speed masses traveling near the speed of light and thus his formula F=ma is able to explain most of the phenomena happening around. However, if Newton were to start apply his formula to such high speed object during his era, he might have a new condition to his law of gravity, that it does not work with masses traveling near the speed of light.
Therefore Newton from his observations is able to find something consistent in the market (example: most of the time price close above or below its opening) and the market conditions for his theory to work and is highly successful. The market can evolve, but his keen sense of observation will help him adapt and keep him safe. It really doesn't matters whether he understand totally the dynamics of the market or not, he still can be successful.
Reminds me of crucial point =D
Albert Einstein in Trading
Understand the dynamics of which prices move, what are the psychology behind the movements (examples: Where are the barrier options, where are the likely heavy stops areas that is likely to follow through, where would the bears/bulls likely to be thinking to attack from) He profits based on his deep understanding of the market structure. I think this approach to trading is extremely versatile, flexible and possess great adaptability. It doesn't matters how the markets evolve, there will be always something to be exploited. It is not like his approach is superior to Newton or what, because the bottom line is consistency in profiting.
Reminds me of FTI or darkstar =D
Issac Newton
Discovered the laws of gravity from his experiences, such as an apple falling to the ground. Highly successful in his field of study and we owe most of the technology we are enjoying today due to him. However, he is unable to explain why is there the presence of gravity.
Albert Einstein
Also highly successful in his field of study. Further discovered that the presence of mass causes the dimensional space around it to curve and the extend of the curvature depends on the mass of the object, that is why we experience gravity. Improved Newton's formula (F=ma) as the accuracy does not hold for objects approaching the speed of light.
Issac Newton in Trading
Observe from his experiences in price movements to find something that is consistent in certain market conditions. Do not understand why it happens, but is able to deduce with a high degree of certainty that it is repeatable.
In Issac Newton's era, they do not deal with high speed masses traveling near the speed of light and thus his formula F=ma is able to explain most of the phenomena happening around. However, if Newton were to start apply his formula to such high speed object during his era, he might have a new condition to his law of gravity, that it does not work with masses traveling near the speed of light.
Therefore Newton from his observations is able to find something consistent in the market (example: most of the time price close above or below its opening) and the market conditions for his theory to work and is highly successful. The market can evolve, but his keen sense of observation will help him adapt and keep him safe. It really doesn't matters whether he understand totally the dynamics of the market or not, he still can be successful.
Reminds me of crucial point =D
Albert Einstein in Trading
Understand the dynamics of which prices move, what are the psychology behind the movements (examples: Where are the barrier options, where are the likely heavy stops areas that is likely to follow through, where would the bears/bulls likely to be thinking to attack from) He profits based on his deep understanding of the market structure. I think this approach to trading is extremely versatile, flexible and possess great adaptability. It doesn't matters how the markets evolve, there will be always something to be exploited. It is not like his approach is superior to Newton or what, because the bottom line is consistency in profiting.
Reminds me of FTI or darkstar =D