For whatever reason, a theme hit me this week that I think is highly important to share with you here.
It all started when Tyler recently pointed out [1] that many traders get caught in the nonstop cycle of learning, and he brought forth some excellent points. Most notably that many traders mistakenly aim for breadth of knowledge rather than depth. I think he’s dead right.
Then I ran across another article along the same exact lines, this time aimed at entrepreneurs [2], highlighting information bias as the tendency to seek information even when it cannot affect action.
After all, what good is information if it’s not altering or improving your actions?
As a trader, you can learn and learn and learn and not see improved results if all you’re doing is learning. Read that sentence again, I’ll wait. In fact, learning without practice [3] will do you no practical good.
In other words, to find greater success as a trader, yes you need to learn, but you absolutely must incorporate that new knowledge into your approach. Without it, you’re wasting time learning!
Learning Isn’t Bad…
Now, don’t get me wrong. I’m passionate about traders learning more, which is why I’ve produced so much quality material through the trading courses [4], service membership [5], and the hundreds of free articles and videos for you here on the blog.
And I fully embrace the always-be-learning mentality, so long as it’s for the sake of (1) staying humble and teachable by the market, and (2) to keep growing so you’re equipped to adapt when necessary.
But It Can’t Stop There
Beyond the learning comes the application, so never leave that all-important step out of the mix.
Bella just brought up [6] the highly valid point of how to learn from another trader by seeing their approach, internalizing their rules, “tweaking them, working on executing them, and then internalizing these improved rules” for better results. It’s one thing to learn what someone else did with a trade, but it’s much more to take elements from it to improve your next trade.
That’s what customized application looks like.
The whole idea of putting knowledge into practice is being in the habit of taking what you’re learning and then putting in the mental effort to decide how it fits with what you’re currently doing. It’s about considering ways to implement the new info rather than simply storing it away for a rainy day.
So by all means, keep learning, but only if you’re willing to apply it. Otherwise, spend your valuable time on something else.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast [7]
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