Personal Finance

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Keep Reading

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Yes it sounds like work. Perhaps you are one of the few that simply enjoys
cracking a book. But the bottom line is that if you want to develop insight,
you best keep reading.

What you read is of course very important. But often you really won't know
whether what you are reading is going to do you any good, no matter how
logical what you are reading appears to be.

Although reading in itself is good exercise for the mind and can be quite
healthy for you (relieves stress), it is the reading of non-fiction that I'm
addressing here and more specifically that which pertains to trading.

There are hundreds of ways to see a thing. We all can be asked to describe
something and end up producing slight variations. One has to wonder at times
whether we are looking at the same thing considering the diverse
descriptions put forth. We're looking at the same things, but in different
ways. This is the beauty of individuality and originality, and we all can
benefit from the views of others.

To my friends I'm known as a read-aholic. I'm addicted to reading. Books are
found everywhere in my home, garage, storage attic and vehicles. There are
those I consider to be excellent and those not worth a wooden nickel in my
opinion. The greatest and best book in my opinion beyond any other is the
Bible. But in discussing trading related, anything to do with market cycles
really holds my attention.

The titles I have read are numerous in all aspects of trading. Market
cycles, technical analysis, trader psychology, market geometry, seasonals,
and the list goes on and on.

The purpose of this article is to put emphasis on not only reading but to
re-read. Simply focusing on all the years I've been involved with trading or
the trading business (nearly 17 years), it became apparent to me years ago
that you should never completely discount any trading book ideas as down
right worthless. The reason it is a book is because someone thought there
was something of value to offer and the publisher agreed he could sell it.
Regardless of the author's motive, there are gems to be found in virtually
every book written.

More has been learned and turned into real value by re-reading a book that
was read some time ago and not given a second thought (or attention
immediate draw to something else). In addition, when you continue to read
more material you are building a set of unlock codes in your mind that, when
re-reading a previously read book, those codes unlock additional
understanding of the old material you overlooked or did not fully appreciate
the first time.

It continues to amaze me as to how much I end up learning when I go back
through my stack of old material and sit down to read it again. With the new
knowledge obtained since last reading it, lights start to go on that prove
to be of value either immediately or when new data is introduced to further
support or enhance what was read.

Reading materials over and over again helps with retention. We mere mortals
tend to retain very little of what we put into our minds. Key bits of
information are being lost due to attention fade or overload. Practicing to
read all the time and doing so will help retention and recognition. This
goes a long way when you are deciding what to trade, when to trade, and what
to do once in a trade. Your mind will be sharper and wiser, and doubt takes
a back seat.

Sometimes I'm asked for a book list of recommended reading. My answer is to
read EVERYTHING related to the field of interest. So for trading, read
everything and not only that which you currently have a bias toward. Until
you expose yourself to what's out there, being biased could keep you in a
mindset that may not provide the best direction. Of course there are limits
to what 'everything' means. You certainly do not want to read material that
goes against your strong moral convictions. Simply use common sense.

So keep reading and read often. Re-read your trading material even if it did
not appear to provide you with any value the first time. You will be
surprised as to what you missed the first or second time and wonder how that
could have happened. Your skills as a trader will sharpen if you simply take
the time to read regularly.

--
Rick J. Ratchford
Trader/Analyst
ProfitMax Trading Inc.

http://www.profitmaxtrading.com

"The KEY to Precision Timing!"

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