"Essence of Trading" Posts
Essence of Trading: Importance of Critical Thinking And Why It Is Not Enough (Part 1)
By Lawrence
Critical thinking is a concept that we learn partially throughout basic education. For some who eventually enter graduate studies, it suddenly becomes a requirement. It is as if the concept does not require learning at all. I find this very odd indeed as critical thinking is not something that comes naturally like our animal instinct […]
Essence of Trading: Trading Is Easier Than Most People Think
By Lawrence
We were told, by traders before us, that trading is difficult – difficult to learn, difficult to turn a profit, and difficult to master. Their words, together with almost every book out there written on the subject, have painted a very grime picture for anyone who wants to learn trading and profit from the financial […]
Essence of Trading: Modern Financial Economics Is Just Alchemy In Disguise
By Lawrence
Economics Is Social Science Many people confuse economics as a science like physics or medical science. Economics is part of social science. It is not the kind of science that can produce precise projection or accurate forecast . In this sense, most of the theories you have come to hear about in economics have no […]
Essence of Trading: Applying The Concept of Refactoring To Trading
By Lawrence
We often hear our peers learning a new trading technique here, finding a new reliable trading setup there, etc. We seldom hear anyone saying that they refined their techniques and reduced the workload. I have to wonder why because having more tools is not necessary better in terms of analysis efficiencies or performance. Refactoring In […]
Essence of Trading: Daytrading (or Trading) May Not Be Your Best Career Choice
By Lawrence
Some people think they can simply put hard work into trading and they will become proficient quickly. How hard could it be, many people asked, that it is just buying and selling something quickly to grab profit, right? Well, I can use a similar argument claiming that it is just cutting someone up and glue […]
Essence of Trading: Emotional Imbalance Can Impact Your Trading Decisions (and Profitability)
By Lawrence
What I am going to talk about is not the kind of emotional roller coasters from life-altering events that we know for sure can cloud your judgement. It is something more subtle and will surprise a lot of people. A Good Read First, I have to mention the book Risk by Dan Gardner as one […]
Essence of Trading: Only Man-made Roads are Straight and Smooth
By Lawrence
Ever observe a tree in detail? From afar, a tree may look tall and sturdy. That is just our impression of the tree. By looking at a tree carefully, you would notice that it is not quite accurate. Its branches are never grown in straight lines. The tree trunk is not a one piece metal […]
