The hits just keep on coming. Here is another response to the student’s request for information about how much traders communicate with others when trading. This one is lengthy but worth the read, as it touches upon some truly great insight into the reality of the market. I especially like the bolded part …
Knowledge is King (so is Cash). The more sources you read from, the better off you will be. The more people you talk to, the better of you will be. Listen to the most reputable and listen to the nobodies. Take everything with a grain of salt and try to decipher the market like you are a psychologist and the market (and everyone talking about it) is your patient. There is not one single strategy that is the only one that works in the market, contrary to many who will say why their way is the best. Being open-minded is key. Don’t fight the trends and don’t get sucked into the exciting game of trying to call tops and bottoms. 99% of all who call are wrong when they call it.
On a side note, I really wish they’d keep track of everyone who makes those calls as everyone who makes the right call once in their lifetime is praised as an oracle even though they missed every single other one. Remember that this is a greedy industry and many will try to manipulate you. Wall street is not your friend, they make money off you, not with you. Be mindful of your sources and their agendas. Make as many contacts as possible. Discussing your thesis/ideas with others will help you understand if you are thinking correctly or if you are missing something. You can only do so much research yourself but having contacts to others will help you expand your research in a shorter time-frame….big advantage. I started this way and I will end it as well. Knowledge is King….don’t limit your resources, expand them. The people who do the best work are the ones who adopt it into their lifestyle and don’t just look at is as a job. Good luck out there.
Wow! This gentleman has his finger on the pulse of what the market is all about. He is right on target, and if you remember nothing else from this pile of gold, remember this nugget – precisely predicting the market is like precisely predicting an earthquake. The world of seismology is littered with the bodies of those who have predicted the coming of an earthquake.
Trade in the day; invest in your life …
