Over the years many attempts have been made to classify knowledge. These have resulted in many classifications. To make it simple there are two types of knowledge. Explicit Knowledge and Tacit Knowledge. In reality, all knowledge is a mixture of tacit and explicit elements rather than being one or the other.
Explicit knowledge is formal and codified. This can be
written down, transmitted, and understood by a recipient. Such knowledge can be
stored, retrieved, modified and discarded easily. Explicit knowledge can be
taught very easily.
On the other hand Tacit Knowledge, sometimes referred to as “Know-How”,
is intuitive, hard to define and largely experience based.. It is often context
dependent and personal. It is very difficult to communicate and transmit.
The art of trading is a complex mixture of explicit and tacit
knowledge. All the successful traders heavily rely upon their tacit Knowledge. It
is impossible to convey this intuitive understanding gathered from experience
and practice to a learner.
We will remain at a low point of the learning curve with
limited tacit Knowledge development. Tacit knowledge is developed by facing
challenges to transform ideas into practice. Without continued challenges our
development plateaus
Most of the struggling traders focus only on the explicit
part and ignore the tacit side. They may probably get “Reputation beyond repute”
and win “Thanks” in trading forums but will never succeed as traders.
Thats a nice fact you have said. Same method/system given to 100 people, not all will have same results, consistently :).
ReplyDeleteAgree ST da. A real trader will not be bothered about the Thanks received.
Dear ST,
ReplyDeleteGood morning!!
At the outset I thank you for the wonderful small write ups that you have been posting.I have compiled all till date in word document & do keep reading repeatedly on weekends.
Requesting you to make a cheklist for your trading style.
A)Before start of day
B)Once IR is established or say Price near to PDL Or DH,DO,PDC In short near DP..
C) To set targets i.e. TP
Though I have made it, still would love to have word of wisdom from you
Thanking you & Best Regards,
Atharva
Murali
ReplyDeleteThanks for the visit and comment
ST
Atharva
ReplyDeleteLet me try
Thinking about something like a checklist or flowchart.
ST
Dear ST,
ReplyDeleteeagerly waiting
Thanking you
ST, would you please give a trading example of this statement "
ReplyDeleteTacit knowledge is developed by facing challenges to transform ideas into practice. Without continued challenges our development plateaus" Thank you.
Jim
ReplyDeleteI assume my methods are familiar to you
For example take today's price action ie 10092013.Notice the price action at BRN 5900.A BOF happened at the area and theoretically it was a short trade when it broke the swing low
But this trade did not work. It ended up as complex pullback. Now you start working on it and continuously study such instances and try to identify the factors that make such a trade click
After a while you will develop an intuition for sch trades. But still you will not be able to identify the exact variables. It may take a long long time to make it rule based
ST
Thank you ST.
ReplyDeleteActually that trade would have worked for me. Short one tick below trapped traders bar (HOD), stop one tick above same bar. First target equal number of ticks below entry, second target at range high. first target hit, then moved stp. to break even. Break even stp. hit six bars after entry.
Sorry for such a long post but I love talking about trading. I very much enjoy your rants and raves section and will continue to read them as long as your willing to share your insights with those of us who this blog.
Trade well jim.