Tuesday, November 15, 2011

1280 would be perfect decption on ES or an actual breakout

Review this carefully

Just something I read

We discussed earlier how such analysis can and often do lead to entrenched opinion which triggers Ego and leads to stubborn defence of one's losing position. It's also a point emphasized in A Taoist Trader course. Let me cite a quote from that course:

Much overcomplicated thinking obfuscates the simplicity and clarity of the real
world. Knowledge must be useful and practical.

In comprehending all knowledge,
can you renounce the mind?

In Taoist philosophy, there are two types of knowledge: useable knowledge that contributes to the achievement of a goal (daily contentment), and knowledge that does not. The only knowledge worth pursuing is the knowledge that serves the purpose. Our ability to adapt to changes in an environment is a double-edged sword. Our mind sometimes accepts external values without skepticism. These values often conflict with our core nature and represent dysfunctional knowledge. However, by using Taoist principles, we can accurately evaluate which knowledge is worth keeping and which should be discarded. 

The amount of information surrounding the markets is mind-boggling. Some of it is useful in the process of decision-making and some serves no useful purpose at all. A trader carefully observes which information helps him navigate the markets and which wastes his time and adds to confusion. Practical usefulness measured by actual performance is a trader's criterion to evaluate which sources should be taken into account and which should be dismissed. A trader must avoid paralysis caused by endless and contradictive information flows. 
If you ever catch yourself questioning simple trading approach merely because of its simplicity, ask yourself: Why are you trading?

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Insightful and Useful Comment!