Today, I wanted to tell you about the book I read on the Dow Theory for trading, but, instead, before getting into the serious topic of Charles Dow and his Theory on trading, I thought I might share with you a question that recently came to me. We will travel to the Dow Theory soon, and for more than one day, but for now, let’s take a somewhat light trip with the following question.
What is the best way to a state of Nirvana in the land of Avalon while trading?
It is not my intention to tease the fellow who wrote this, as I understand the intent behind the phrasing, and, as a writer, I admire the metaphorical approach to the question. Thus, I will answer the question from two perspectives. The first is more serious than the second.
“Nirvana” is not a word that I would use to describe even the most joyous state of a trader’s life. True, many moments in a successful trader’s life can approach extreme jubilance, but, overall, trading is work, and as we all know, work has both good and bad sides. Trading is often stressful, tedious, and difficult. Before any trade is ever made, a trader travels down a road chock-full of decisions, decisions that often stretch the bounds of confidence. Yes, many traders utilize systems that minimize the decisions, and/or many traders are simply so good at what they do that decisions flow like water from a tap, but for most of us, this is not the case.
As well, the work of trading is enormous. First, one has to spend years learning the craft, and even more time developing the art of trading. Learning the craft means figuring out how the whole system works, studying the trading markets, understanding fundamental economics, and, developing a trading style with corresponding strategies that only come with more study, lots of experimentation, and time. This work can be tedious, which often leads traders to search out short cuts, which do not exist, even if around every corner another guru, newsletter, or system is promising you that short cuts do, in fact, exist. It is fantasy to believe that somehow, out there, a bit of magic exists that will allow you to simply step in and make money.
Inherent in the question above is the second perspective, which is fantasy. Avalon is the fabled island of sorcerers that served King Arthur and helped bring him to power in the days of Camelot. It was a beautiful place, peaceful and without strife, that is until treachery slipped in and the island, with all of its inhabitants, slipped into the timeless mist taking with it the magic that made King Arthur great.
I like the fact that the author of the question likens the world of trading to a world of magic filled with sorcerers dedicated to serving the greater good of man. Why? I like it because it takes the treacherous waters of trading and turns them into a gentle pool fed with babbling brooks and rippled with cascading water. Ah … what a nice image … If only it were so …
Just remember, my friend, deceit and greed destroyed Avalon, two corruptive elements only to common in the very real world of trading.
Trade in the day; invest in your life …
