The Importance Of Context In Learning

It is not uncommon that I come across a new trader who has settled himself to "stare at the DOM (or the time & sales) for 6 months". Obviously, the type of success in learning how to tape read with this approach is going to be very low. Why? Because the importance of context in learning is missing. And, this is something that so many educators don't understand! We learn best what we already know. We learn best what we already understand. We learn best when we understand the context of what we are learning before we learn it. Attempting to learn something new without context is like attempting to put the pieces of a puzzle together without knowing what the completed puzzle looks like. 

It should be clear that the lack of context is why most traders won't learn to tape read by just "staring at the DOM". The better approach, in my opinion, is to integrate the skill of tape reading into a framework of placing trades. In other words, the best way to learn to tape read is to read the tape and make trades -- not to stare at the DOM.

Having explained this, let me be clear you don't have to place real money trades. You can place simulated trades. But, please don't stare at the DOM for 6 months. Trade using AlphaReveal for 6 months and you are far more likely to "get it".

Monday, January 20, 2014 3:07:00 PM

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Risk Disclosure:

Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

Hypothetical Performance Disclosure:

Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.