When new players first enter this
fascinating world, they run quickly to bookshelves
and absorb the trading masters. But Murphy,
Elder, and Schwager reveal an organism that can only
be digested in small bits and pieces. Neophytes
must move slowly and protect capital until
experience finally awakens knowledge. Over time,
trade rewards and tragedies condition the mind to
develop the instincts needed for long-term
survival. Only then will the journeyman trader
finally discover what works and what doesn’t in this
challenging game.
Seasoned traders
often carry a flawed and incomplete market reality
as well. They limit execution to a few classic setups rather than
build understanding of the entire complex mechanism.
When the market fails to offer perfect
conditions for their limited strategies, tactics
demand that they stand aside and wait. But if they lack
strong discipline, the restless mind fills in the
missing pieces and encourages bad positions. These
narrow tactics may end careers in other ways. If the
masses discover their well-worn game, it
could stop working completely and leave them with no
source of income.
