Do trading edges for retail traders rely on intellect or do they rely on knack ?

Do trading edges for retail traders rely on intellect or do they rely on knack ?

  • high intellect

  • basic intellect plus high knack

  • high intellect and high knack

  • Other

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T

traderwald

Hi guys,

Do trading edges for retail traders rely on intellect or do they rely on knack ?

For example, if we were to use analogy, in various aspects, we find people who analyse and try to intellectually understand how stuff works and try to improve using technical skills and imagination and application. This I would categorize as intellect for this question.

On the other hand, some people in various walks do not analyse a lot. They find a pattern that works or keep it very simple in a way a thinking person may not be able to.

Simplest example would be a kindergarten thing where if you are asked to write the multiplication tables (example below), some kids do it top to bottom to finish it quickly like write all the 2s in the first line one below another. Then write the x one below another etc. The would be the knack kids. Others do it left to write to really learn this thing :-D - These would be "thinking" ones.

2 x 1 = 2
2 x 2 = 4
and so on
.
.
.
.

Question is, which of these 2 (or maybe combo) gives the edge in trading ?
 
retail traders don't rely on intellect.
You just need simple maths like + - only.
You don't need to know complex
curvilinear equation, complex Navier Stokes Equation, Euler formula...


you rely on knack.
BUT!!!! you have to try very very hard.
You have to put lots of effort as if you were going for olympics running competition ( running is not complex at all ).
You have to practice 15 hours a day every single day for many many months / years
to be a successful trader.
It is after you manage to change the ugly hard carbon into sparkling diamond then you don't have to work that hard.
But then many trading coaches (who earn $$$ from talking and not trading ) say you just need to put in 15 minutes a day trading, and money will just fall from the sky.
 
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Better than average intellect, but not high needed, perseverance, good work ethic-you will put in years, be able to keep good stats whether on spreadsheet or retention. Knack? = knowledge and gained by doing, many think they don't do some type of backtesting, but all do backtesting of some type, otherwise one throws darts at a screen.

I think good mentoring can help, it would steer a trader into a positive direction and should be repeatable concepts. It should cut back 99% of TA so that you can clearly see the bars/candles on the chart, should show when not to take signals, reduction of risk, trade management, understand patterns near extremes and last is entry. Too many concentrate on getting in when it is but 1% of a system.

Happy Holidays all.
 
maxinger said:
You have to practice 15 hours a day every single day for many many months / years
to be a successful trader.
More...

Morning maxinger,

This is very true, from my own trading journey, I am seeing the more I practice with seriousness and record notes, the better I become, even at just self discovery.

I would add one more important thing here : Obtain Quality Logical Trading Education. Even typing "Quality Logical Trading Education" just tired me out.
 
SimpleMeLike said:
Morning maxinger,

This is very true, from my own trading journey, I am seeing the more I practice with seriousness and record notes, the better I become, even at just self discovery.

I would add one more important thing here : Obtain Quality Logical Trading Education. Even typing "Quality Logical Trading Education" just tired me out.
More...

right mister.
unfortunately most educators earn money from teaching, not trading.
There are some genuine traders who teach occassionally but then trading is more of an art rather than science.
 
In my experience, once one gets some kind of edge, consistency is the key. One has to do the same thing over and over and over day in and day out without wavering for years and this is extremely difficult for most people. Every failed trader I have seen in real life has lost due to lacking this trait. Inevitably they string together a few wins then start wondering "well, maybe I can buy in a little lower" "maybe a few extra contracts" or "maybe I need to start selling a bit higher" or the infamous "I just need to pull a few dollars out this month to get through some bills" etc. Another category of failure unto itself is when a trader has a valid edge but gets too scared in a draw down and pulls everything out despite his edge telling him to hold. To add insult he then gets "mad" at the market to resolve the cognitive dissonance and doesn't get back in. In all, I believe the lack of consistency has more to do with the terrible statistics for traders than anything else.
 
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maxinger said:
right mister.
unfortunately most educators earn money from teaching, not trading.
There are some genuine traders who teach occassionally but then trading is more of an art rather than science.
More...

when someone says trading is arts not science, only means he has not done systematic research of his strategy. if he has gone through that step, he will know which rule is useful, which is not, even his subtle instinct has some patterns behind it beyond his own realization.
 
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