Ben makes a great point that success in life comes from a combination of knowledge and practice. First, of course, you need the knowledge. If you operating under false assumptions no amount of practice will do you any good. But assuming your information is sound, it’s not enough.
We are operating under the 19th-century model that the mere acquisition of knowledge will give you a competitive advantage, but that was true when only a small percentage of the population had access to education. Now, each and every one of us can access all of the world’s knowledge just by lifting the smartphone from the back pocket of our pants. “Google it” has made things immeasurably easier and at the same time less valuable.
This is especially true when it comes to trading. As retail traders, we now have access to more intelligence that the hedge funds of the 1990’s. We can write algos, execute them and adjust them while getting a third cup of coffee at Starbucks. But yet we know that it’s not enough. I spend all my time discovering “knowledge” in the market, by writing algos that can trade the FX market. The setups are great - but they are only useful if I apply them properly. Once you have established the basic viability of the setup, practicing it over and over in real market conditions is where true success lies. Too often we make the mistake of thinking our knowledge is wrong and quickly abandon the setups we create, while the real problem is that we simply haven’t practiced enough.
