Many people have a degree of skepticism when it comes to various trading techniques, strategies and methodologies. It is natural. You hear all these stories about get rich quick schemes, about all these different forex strategies, about all the hundreds of different indicators and patterns, about all the various forex robots for sale. There are tens of thousands of threads on various forums. People suffer from information overload, and wonder if the whole forex thing is just a whole big scam. Many people’s legitimate doubts turn into cynicism, where they can distrust the market, or other potential forms of market analysis.
And this cynicism, if directed towards the wrong things can delay your success as a trader.
For example, in my own trading journey I started out with technical indicators and all those charts. And usually there is a certain time period where you actually believe they work. Maybe you see all the hand picked charts of the great moving average crossover setups or macd divergences. Maybe you even catch a few yourself and believe that they work. You may even think trading is extremely easy, for the technical indicators are doing all the work for you.
I believed in them for a few months. I wasn’t just skeptical of other trading systems and methodologies, I was cynical of them. I didn’t want to look past technical indicator trading to any other forms of trading, whether it was price action trading or order flow trading. I would just block out that information. I was cynical about other pieces of information.
I remember reading the two Market Wizard books and they would talk about all this fundamental, global macro stuff. Bill Lipschutz would talk about information flow. Bruce Kovner might talk about the carry trade. Someone else may talk about interest rates or inflation. I would say to myself:
“What is all this mumbo jumbo stuff they are talking about. I can just look at my moving average, macd divergence, or chart patterns and they can tell me everything I need to know. I don’t need to learn any of this global macro, inflation, interest rates stuff. I can just look at my charts.”
That is what I used to believe many years ago. I had to admit that I was doubtful and cynical about the information that existed outside of the charts. That skepticism and cynicism caused me to shut out all the other information, some of which could of been important.
I thought the technical indicators and whizbang forex robots were going to pave the way to financial freedom. That didn’t work out too well. Either I lost money, broken even, or posted a small profit. I didn’t want either of those three. I wanted to achieve the highest point on the trading profit ladder. Of course, I didn’t know what the trading profit ladder looked like back then. There was no way I could of known. Everyone posts a million examples of technical indicator or chart based trades in the forums, with few people offering example of order flow trades. But now, many years later I have figured out what the trading progression and ladder looks like with almost crystal clarity.
Eventually I discovered order flow trading and started embracing the information flow. I started embracing the trading volatility. I went back and re read the Market Wizard books, this time without any cynicism or doubt. I re read it with a flexible mind. The order flow and global macro puzzles started coming together a lot faster that time around.
After all, eventually it occurred to me that I hadn’t found any FAPTURBO millionaires out there. Although I had found and researched many global macro millionaires and billionaires out there. So I figured, what the hell, these people have made a lot more money than me, perhaps they know something about the markets? I read the books again with an open mind, but this time with my order flow knowledge I had accumulated. I knew much more clearly how to apply the knowledge in the books to find the order flow trades and figure out what was moving the markets. It became much easier from then on.
It was easier, because the fear was melting away. The fear melted away because I actually understood and could apply the information to current markets conditions. There wasn’t much to fear anymore from the trading system perspective. Although, slaying your inner demons is another topic for another day.
I wasn’t cynical anymore. Today I embrace the order flow and information flow. I have no problem reading 20 articles a day and analyzing them. If that is what is needed on a particular day to catch a 200 pip move, then so be it. I am grateful for whatever market volatility comes my way. And I exploit it relentlessly with leverage to boot.
Beware on what methodologies, information flow you may have cynicism about when it comes to trading. You don’t want your trading journey and profits delayed by months or years.