The difference cannot be properly appreciated until one has personal experience of being both a novice and a more experienced trader who over years of practicing the correct approach can really feel the market. So the bigger question is perhaps what individual qualities (or alternatively lack of qualities) stop most people from either reasoning out the right path for themselves or recognising the correct approach if it is pointed out by another?
Trouble is there is no correct approach.
No one will ever agree on that because it quite simply does not exist.
There may well be a correct approach based on personality traits, circumstance
and goals.
Everyone who has an opinion on the correct approach will be different.
So it follows the approach will naturally differ.
Some even feel the need to denigrate another approach merely because it is
personally unsuitable for them and / or they failed at it.
I've never understood why and never will.
Some like sugar in coffee, others don't, trading is no different.
You have to find a path that suits you.
The only real requirement is profitability, the approach is a means to an end nothing more.
What I did have was the ability to be open to new information.
What I still find sad is the people who will not hear, do not want to learn, shut themselves off from any opportunity through stubborn pride and sloth. I am resigned to this being part of the human condition
The markets provide an endless flow of opportunity. If people would commit to seeking the truth about them selves first and the markets second, and cast aside any sloth and destructive pride based motives, comparisons with others, and just try and do the best they can, they'd at least have a chance.
Completely agree, good point well made.
The bold highlight in particular is the key most people overlook.
That is pretty much what I was driving at earlier.
An approach can only be chosen and honed once you understand your own
strengths and weaknesses.
That is why the correct approach is one that suits the individual.
In terms of efficiency, arb and scalping are arguably the best.
So why does anyone swing trade, position trade, trade directionally,
pay the spread instead of earning it etc.
Simple - it comes down to the belief and confidence the individual has in their
understanding of their chosen approach, and more importantly its personal
suitability.
The issue of being open to new information - generally people are only going to
be open to new information that suits their way of thinking.
Someone with a personality suited to scalping is unlikely to be as open to new
information about fundamental position trading for instance.
That does not mean fundamental position trading has no value or merit or is
not profitable.
I'm pleased you're carrying on the good fight here - it is appreciated more than you know. There will be other people who grab the opportunity and run with it when given a nudge or two. Perhaps members should take more note of your posts and address the questions you are asking rather than regurgitating "common knowledge" about IBs, bots, HFT, etc. Which leads to another personal quality: insecurity, needing to know or pretend to know to give some comfort, as it is unacceptable to the self to admit ignorance. We all had to start somewhere - and being honest about where you are and what you do not (yet) know is a good place to start.
Perhaps members should disregard everything on the internet and
learn to
think for themselves.
Despite regurgitating common knowledge about IB's and HFT and so on,
I freely admit I have no knowledge whatsoever about lots of things
including pin bars for instance.
