Lessons from my first Guru... KNOWLEDGE of trading is not a problem for most TRADERS of the participants in the market.
Their problem is that they don't know HOW to think when they are trading. They don't have the CORRECT APPROACH to the markets. They don't have the APPROPRIATE ANTICIPATION for trading, and they don't have the CORRECT EXPECTATIONS. Most of traders are TERRIFIC students. They are generally willing to buy BOOKS, TAPE, and COURSES on how to trade. They SPEND MONEY to lease or buy equipment, charting services and various devices to help them become BETTER traders. They SPEND HOUR upon hour poring over charts, contemplating markets, devising all manner of techniques and methods for WINNING. They know about trend lines, and in some cases, speed lines. Some of them know how to SPELL FIBONACCI, and they've read about "Fib Ratios." They might know about WAVES and wave theory and the "January Effect". They know what "cyclicals" are and they've read about CHAOS THEORY. They can SPOT a fifty percent retracement without even a calculator. They know what an OSCILLATOR is, and understand "RELATIVE STRENGTH". They know parameters for any number of technical studies by heart. Some of them are diligently STUDYING BOLLINGER BANDS. They can sling around TERMS like MOMENTUM, SUPPORT, RESISTANCE, OVERBOUGHT, OVERSOLD, TRENDLINE, CHANNEL, BREAKOUT, etc... NO, it's not their LACK of KNOWLEDGE about trading. They KNOW HOW to trade. They are RIGHT about DIRECTION EIGHTY PERCENT of the time. Is it FEAR? Is it GREED? Is it, perharps IMPATIENCE? Is it LACK of MANAGERIAL SKILLS-Planning, Organizing, Directing, Controlling? Is it that they don't have the PROPER ATTITUDE? Is it cause they LACK an ECONOMIC MOTIVATION? So what's STOPPING them? Do they secretly NOT want to win? IMO...it is not only SOME COMBINATION of ALL of the ABOVE, but it is ALSO because they LACK UNDERSTANDING of SOME of the MOST FUNDAMENTAL SKILLS that are known to man in the area of SELF-DISCIPLINE. In addition, they also NEVER really UNDERSTOOD the NATURE of BUSINESS, MONEY, RISK, TRADE and PERSONAL MANAGEMENT-or the DIFFERENCE AMONG THEM.
