On critical skill to develop in your trading career is to be able to ask the right trading questions. But that alone is not enough. You need to ask the right trading questions to the right people, in order to get the best possible answers, then being able to adopt them and implement them.
It is an important process that many people get wrong. You need all four parts in order to be able to make certain breakthroughs needed. Here is the process:
Ask the right trading questions–>To the right people–> Higher chance of better answers—-> Your choice whether to adopt, implement, execute them.
The worst possible situations that many people, including myself have fallen into is that you ask the wrong questions, to the wrong people. That usually gets you a very poor answer. Then you adopt and implement that poor answer. You messed up in all four stages and that is the worst.
Lets say a trader asks a beginning trader asks a technical analyst which moving average combination is best for trend spotting. The technical analyst tells the trader that he likes the 20 and 50 exponential moving averages. The beginning trader adopts, and implements that answer across all markets and time frames. They experienced mixed results and waste a few weeks of their time.
Well the beginning trader asked the wrong question about what technical indicator. Technical indicators do not generate order flow. Then they asked it to the wrong trader. Then they adopted and implemented the the answer. The worst situation you can be in. I have been in it many times, but have gotten better at it over the years to cope with it.
Lets say a trader is learning forex and is asking another technical analysis trader how to trade the news. The technical analyst tells the trader the best way is to bracket the market with buy and sell stops. The newbie trader then adopts and implements that strategy. Perhaps on certain trades it makes money, on others they get whipsawed. Overall it is a losing system.
Well the trader asked a legitimate question about how to trade the news. They asked it to the wrong trader, who doesn’t know how to trade the news. They get a poor answer and then go and implemented it immediately.
An astute trader hungry for knowledge and information asks an order flow trader why the market formed a low point, bounced up a little bit, then made a false breakout lower before finally starting a huge up move. The order flow trader responds that the market was probably gunning for some stops or option barrier. Some news may have also played a role. The trader then takes the information, but chooses not to implement it, not to adopt it, not to pursue the strategy further.
The trader asked the right question, to the right trader. This immensely increases the chances of getting the right answer. The trader does get the right answer, but choose not to implement and pursue the strategy further? Why not? Usually this means that the trader has their own psychological and emotional problems that they need to overcome. The trader has great potential, they just need to keep playing the game for a bit longer to resolve some of their inner demons preventing them from applying the material.