In the end, you can only spot what you know.

person using telescope

Photo by James Frid on

In the world of trading or investing, you can never find a genuine tutor, mentor or an institute that teaches you trading, technical analysis or any type of trading strategies. In essence, the day you decide to become a trader, you are on your own. You are your mentor, coach and above all, creator of your own destiny. You decide your success as well as your failure. Every single day, every single trade and every single book on trading or investing you read decides your destiny as a trader.

From the information and knowledge you gain, you devise trading strategies and theories on your own and experiment them in the market. Ultimately, the market will tell you whether your theories and strategies are whether right or wrong. A lot of learning, reading and observation are required to develop yourself as a good trader.

A famous stock trader, Jesse Livermore once stated that “Everything you want to know is there right in front of you.”

What he really meant was that the information or data points required for successful trading are right there in front of the trader. Then why only a few people can successfully trade the markets? The secret lies in the observation and learning of a trader based on the information and knowledge he or she gains.

Trading is primarily a pattern recognition job. To observe a pattern, first of all, you should know the pattern. For the past few years, when I started devising new strategies or come up with new theories for trading in the market, I always wonder that, all these data points were right there in front of my eyes from the day I started trading or studying chart reading and why I didn’t notice them?

The problem with the market and our life is that we can’t spot or observe things that we don’t know or even learned. Our field of vision is limited to the horizon of our knowledge. That is the reason why the role of knowledge is highly important in our life. More information and knowledge you gain, you can spot or observe with more depth and detail in your life and also in your profession.

When you read a book, your comprehension of a sentence, a phrase or the book as a whole depends on the strength of your vocabulary. You can never understand the meaning of a sentence or phrase if you don’t know the meaning of the words in that sentence or phrase.

Today, quotes like ‘knowledge is power’ and ‘ investment in knowledge pays best interest’ seems very meaningful to me. I realize that it is the knowledge that makes us know more about things and only if we know more, we can see things more clearly. Mundane, irrelevant objects or theories give out their real face only if we look at them with a mind filled with the knowledge to decipher the secret behind them.

Only if you see things clearly, you can analyze them and come into a better conclusion. That is the reason people with better knowledge comes up with new, better ideas, thoughts and ventures. It is said well that, readers are leaders. In truth, the people who know more can see more and observes more. Only the people with a clear vision can lead our society. A person who is not open to new information and knowledge is like a blind man who fails not only to excel in his profession but also to lead even his very own life.

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