There are many traders that refuse to read and study about wealthy and successful traders. Whether they are millionaires or billionaires.
Some people choose to not study them because they feel that they are part of an insiders circle that cooperates together to make money. That the big players all have the politicians and regulators in their back pockets. As if being cozy with the politicians and regulators can help you predict the next 200 pip move in the EUR/USD. It can’t.
There were plenty of banks during the financial crisis that took huge losses. Why didn’t they short the housing market like some hedge funds did and make tens of billions of dollars instead of losing tens of billions of dollars? Because being cozy with the politicians and regulators can’t help you catch the next big macro move. It is not going to save you from placing trades that go against the order flow, liquidity, and global macro forces.
I address these concerns with some satire in my post about whether the big banks and Goldman Sachs control the market.
Illegal or Shady Means?
Others believe that they make their money from insider trading or some other shady or illegal means. Other people feel that whatever information, interviews they give and put out are all misinformation that they use to deceive the public.
You can very quickly attempt to research and validate what they are saying in the interviews. You can look at historical charts, read historical articles, etc.
Other people believe that their knowledge or information doesn’t apply to trading. Typically these traders are stuck in the beginner trader cycle or price action trader cycle. I am not saying everything that they say is knowledgeable or useful – it probably isn’t. But you can probably find 5-10% of the nuggets of value in researching their trades, history and quotes they have made.
I used to be in that group as well. That was back when I refused to embrace the information outside of the charts. That was back when I was stuck in my technical indicator or price action ways.
I used to be like George Soros who? Paul Tudor Jones who?
I used to not care about such individuals. I thought I had struck gold with the magic technical indicators and chart patterns. Or with some hot new forex robot.
Abnormal Arrogance
I was quite cocky back then. I thought there wasn’t a new level to take trading to. I thought that those millionaire and billionaire traders didn’t know much, since I had found the secret technical indicators or chart patterns that were going to lead me to riches. I used to think that I knew better than them, that I knew more than them. I used to believe that I could not relate to them, that if they were not perfectly describing my problems or my trading system, that I should not pay attention to them. I used to believe that because they didn’t rationalize the trades exactly as I did, that there was no value to be gained.
When in reality, I was the dumb one for not embracing all the possible order flow, liquidity, sentiment, positioning, and global macro information possible of which the highly successful traders typically talk about. This one mistake delayed my progress by between anywhere from 1-3 years. Even if they do not trade exactly like you, it is still advantageous to study and research them. While asking the right trading questions.
Pretty big mistake on my part. It can delay your trading progression by months or years.
I would read about the big trades of the past, about Soros breaking the Bank of England, but I wouldn’t really dig much deeper. Until finally I learned about how to view the markets from an order flow and liquidity perspective. I learned about the global macro forces that can cause big moves. I created a system and process for determining market sensitivity.
I wizened up and began applying my new found order flow powers and information assimilation and analysis skills to those great trades of the past. Things became a lot clearer. Crystal clarity developed.
Embrace It, Enjoy it
Now I enjoy reading about great traders of the past. It helps with discovering new inefficiencies and taking your trading to the next level of being easy and effortless.
Don’t fall for the trap of not studying the great and wealthy traders of the past. Plenty of nuggets of value in there as long as you view the market from an order flow and liquidity perspective.
That reluctance contributed in an almost two year delay in my trading progress. Thank God it did not turn into a ten year horror story like you hear about on some forums about people studying the markets for ten years and still stuck in the technical indicator cycle.
Two painful years, but now I get to spend the rest of the time focusing on what truly moves the market. And it is a heck of a lot more fun than fiddling around with technical indicators that will never generate not even two pips of aggressive order flow.
Of that I am entirely convinced of.
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