You hear the term thrown around a lot, that knowledge is power. That is definitely not true in all cases. There are some very smart people that I have met, many well educated, with impeccable academic credentials in various fields including economics, finance, that have failed miserably in trading, and continue to do so to this day. They suffer losing month after losing month, blown account after blown account. Many can even be bitter and resentful of the trading success of other people who they deem “less qualified.” Why doesn’t their superior education and academic credentials translate into trading success and consistent profits? Because the market does not care whether you have a master’s degree, or whether you just have a high school diploma. The market will go wherever it wants to go in accordance with the order flow and liquidity. It is common for people who have many academic credentials to be so far away from what truly generates order flow and moves the market.
It doesn’t matter what educational level you have. What matters is that you know what will generate order flow, what will consume the liquidity aggressively and move the market. If you know what will generate order flow in the future, and know how to structure the trade properly, then it does not matter what educational level you are. The market moves in accordance with the order flow and liquidity. Beyond that, the market does not care what other academic knowledge you may possess.
It is of course critically important to gather up the very best information possible on a particular subject or field. You always want some sort of guide, blueprint, template, and be pointed in the right direction. There are people slaving away and spending hours upon hours on trying to find the magic indicators on their moving averages, or testing out some “black box” expert advisor that may save the day. I played that game for a while a long time ago. Luckily I ended that chase, and focused on learning order flow trading, which is as close to the Holy Grail as you can possibly get to.
Not only do you need the best information possible, but you need to find the motivation to actually apply the knowledge you have acquired. You need to test, implement, place some trades, tweak some more, discover more order flow generators, and develop some rules and guidelines in order to become successful as a trader. Not only do you need to be a sponge and soak up a lot of knowledge; you need to apply the knowledge and overcome the inevitable hardships and small losses than come with applying anything knew. It will get you to step out of your comfort zone. But then, sometimes that is where the most profit lies in.
The financial markets are littered with people who have amassed large volumes of knowledge about everything that does not generate order flow, thus causing trading failure. Trading success is achieved by people who have amassed large amounts of knowledge on what will generate order flow, and boldly act on that knowledge.
In order for you to succeed in many endeavors in life, especially order flow trading, it required constant and sometimes massive exposure to important ideas, concepts, information, inspirational examples, trade examples and various applications of it. It can be information overload in the beginning, but there is light at the end of the tunnel. Every bit of information on what can move the market that you soak up enters your subconscious mind. Eventually you can develop a certain feel of the market that you cannot explain easily, but that helps you enormously in your trading.
Trading success is achieved by people who have amassed large amounts of knowledge on what will generate order flow, and boldly act on that knowledge.
Many people like to search for the new technical indicator, or some special trading system that will finally be ‘the one’ that turns a profit for them. They say, just one more test of this new system, just one more purchase of this new forex robot that will give them trading riches. Well, once you learn order flow trading you will discover one of the most powerful order flow drivers are unfulfilled expectations. The people buying those new trading systems and forex robots will undoubtedly experience the emotion of unfulfilled expectations and therefore get discouraged and stand a high chance of removing themselves from one of the most lucrative markets on the planet.
Successful traders focus on the implementation of the best order flow knowledge available. They gain ever deeper and more certain knowledge of what generates order flow, what moves the markets, and what inner demons may be preventing them from progressing to the next level. That is far more preferable to hopping around from system to system, tweaking settings on indicators that will never generate not even two pips of price movement.