As I wrote yesterday, the world is full of interesting yet differing opinions, and that is what makes it fun. After posting my thoughts on the question of trading as art or science and taking my stand that trading is essentially both, I came across another article that offers an interesting opinion. Jerremy Newsome of TradeSmart University, another notable resource for educating traders suggests trading is more art than science.
- I feel musicians tend to make the best traders. And, yes, I mean musicians in a very androgynous way. Trading is much more art than science. A lot of engineers pinpoint and factual people tend to over-complicate trading and want it to have all this concreteness that simply isn’t there.
The last point is the most salient regarding trading, as it points to the reality that the market is not stagnant; it is dynamic and constantly in flux. This is the reason most market gurus will tell you that timing the market as a trader is not a wise thing to do. The opinion piece goes on to explicitly say this in an artful way.
- The market moves every day, every hour, and every second. It’s always changing, adapting and moving in an organic way. If you, as a trader, do not change, learn, grow, adapt and condition yourself every day, hour, or second, those who do will make the market their playground. And those select few will always trade smart.
Although I am not sure I agree with the point that musicians tend to make the best traders, I do agree the market is fluid and traders need to adapt as best they can. In any case, I liked this article as well, and you might too, so here is the link.
http://www.traderplanet.com/commentaries/view/162784-trading-do-musicians-have-an-edge/
I am finding it hard to get into the market these past few days. It seems the dips have gone away, as the market continues a slow creep uphill. On the one hand, this is good because I make money in my investment portfolio. On the other, I have to work harder as a trader because I have to find new stocks that don’t follow the overall trend. The good news is there is always a trade out there.
As to the market, it appears it has totally baked in the fiscal cliff nonsense. Given its five-day rise and the rather soft movement of the VIX, I think the market has accepted the idea the problem will be resolved, either incrementally, or in one fell swoop, either before the end of the year, or soon thereafter.
And since I haven’t mentioned Europe in a while, here is a piece of news that supports a position I took over two years ago – that the EU would not fall apart; that it would slowly but surely work toward a more integrated political and economic structure.
Germany signaled on Wednesday it was ready to back plans for the European Central Bank to be made the chief supervisor of the banks, raising the prospect of a breakthrough on the European Union’s most ambitious financial reform.
Again, I say, get ready for an economic boom. It is coming, and when it does, the voices of the wild-eyed wanderers shouting from the hilltops will be lost in the steady wind of economic growth from Europe, Asia, and the USA.
Trade in the day; Invest in your life …
