Trade The Journey

Trade The Journey

Book Learnings: Them Fancy Book Learnings!

One aspect of my life I am thankful for is my ability to interact with people from varied backgrounds. Various circumstances have forced me to do so. And its all about perspectives. Your first assumption upon hearing a different perspective is to compare it with your perspective.

At least this is what I found myself doing when meeting someone new. But in order to truly interact with someone, you have to put your perspective aside.

Upbringings and experiences can lead you to believe that everyone has had the same opportunities or lack thereof. Not true. You will encounter people whose appearance and lack of educational achievement camouflage their true intelligence and mental agility.

And others whose educational achievements and appearance allow them to masquerade their ability to critically think and apply the results quickly. And then there’s everyone in the middle. Finally, you learn that common sense and being able to critically think trumps all else. But sometimes those skills aren’t in your trump card.

Sounds like statements out of a history book you received in the sixth grade! Surprising how real and applicable some of those simple statements can be. Learning what to say, when to say it, and how to say it can be the difference between a successful or failure in the interaction.

It’s right around this time that you learn that book learnings can help you but only so much. As much as the books may lead you to believe, most of the knowledge that really matters is gained through experience. Sure you can pick up some of the tricks and wisdom others have given but applying the information is the real test.

Never has then been so accurate than in the market, where the price of an asset can change at a moments notice. If an extreme situation occurred, it could ripple throughout the market.

As you may know, I’ve been studying the market eager to apply the information. Keen to trade. Ready to book my first profit. The cryptocurrency doesn’t count, the ETF’s I own don’t count, the only thing that counts is the profit I earned from someone else.

Sounds crude but its true.

And too me being able to book a profit in the murky waters of stock investing is a treacherous endeavor. But it is the ultimate test of your ability to make a profit. It’s easy to press the button to buy and sell. The patterns are there to spot: trendlines, channels, wedges there all there. Because it’s so easy to believe that you are right and will be right eventually even if you lose.

The books teach you this. There are various books on every strategy and indicator imaginable. I know because I tried to read them all! All of them have you to believe that learning this one thing will surmount you to the heights of success.

None of them replaces the experience of actually investing/trading. Sweating, wondering if the next move on the right edge of the screen will to be to your benefit or loss. Can you implement the knowledge now?

Rest assured everyone who has or will invest or trade will feel these emotions. And it is here if you are patient and observant, you will find out what works and what does not work for you. Which indicators, strategies, and movements you can use to identify price movements that work for you.

Every post I think I should be listing my investments, my returns, and losses. And I’m a bit on the fence about it. The notion of possibly recommending investments that are not suited for the particular reader or opening a reader to potential losses doesn’t sit well with me.

Another reason is I’m not a certified financial planner yet. I’m still studying to become one. So for that reason, I think its best to recommend some thought processes that might lead you to discover what’s best for you.

That’s what these posts are about. Enlightening others that there are indeed levels to financial knowledge and investing. Most of it begins outside the classroom, though.

Ideas and strategies are open to you, not so much of what to do but also what not to do. These are long term financial lessons.

One, in particular, I have seen in the “Real World” is the lack of due diligence. The lack of research. Not treating every long-term purchase regardless of category as an investment. Not truly thinking of your happiness or in some case savings that show up as future returns or sources of income (Dividends).

The best investors in both life and the market are those that practice the simple lessons of discipline, preparation, and endurance which will outperform the best indicator. Because no one knows the future, they can only predict it.

These skills aren’t available to be purchased like a book or any other item. They are earned. And companies, Management, Business owners and the human factors of production ( Us as investors) in the economy should adhere to these skills.

Our longevity and the success of our plans are at stake. Our earnings and earnings outlook is at stake.

The picture of this blog post shows the centuries-old battle between the thinker and the doer. One battle my mentor has personally become involved in, as a championing voice of “The Doers”.

Thoughts? Corrections? Opinions?

Leave a Comment

Your email address will not be published. Required fields are marked *