Today's Quote: “Ask the experienced rather than the learned." - Proverb.

The last two sessions we were discussing the fact that professional traders all pay to get educated. They pay one way or another. If by no other means, the market charges a very hefty fee for education.

Next up: Good traders… Let their "senses" develop, learning when to sit on their hands, when to be aggressive, and when to anticipate...

When you learn to trade, whatever system you use, there is a big emphasis on being ‘objective’, and nothing could be truer. The biggest mistake made by many traders, without a doubt, is using their ‘gut’, flying by the seat of their pants, or whatever you want to call it. Becoming objective and using a method that is reproducible is key to success. Virtually all traders need to strive to be more objective.

However there can be a limit. There has to be a limit to being objective. Why? Because a truly purely 100% objective method becomes a system, and there is no system that works in trading. There never will be. Anything to easy to reproduce will be replicated until useless. That is why we teach ‘education in a method’ not a hard system. The bottom line is that at some point, some subjectivity will return. You may know all the technical requirement for a setup, but there is always a grey area where you have to decide if something qualifies or not. After all, that is what makes a market.

So at some point, after all the education is absorbed, good minds will begin to develop the softer side of trading. This is the development of ‘senses’. The whole world may be screaming to go long, but you know better. You have seen this before. You sit on your hands. It is something that can only come from experience.

A final thought, an old cliché: To trade well you need good judgment. Where do you get good judgment? You get good judgment from experience. Where do you get experience? You get experience from bad judgment.