@mrkstructure BE first pullback to vwap,tight range candles holding vwap, color change from red to green on the 2 min chart, stop of was a close below vwap
@ruth_capital Hey @ruth_capital $prct if you weren't already in this stock and were about to buy in first time would you buying the base breakout or would you wait for a pullback to the 150 sma where it has a history of bouncing?
Finding an Edge in a Noisy Sea
The amount of information available for free is extraordinary.
For the curious among us, and if you know where to look, the internet is a treasure trove of knowledge.
Which raises the question: how can you stand out from the crowd?
After all, if everyone can access the information, how can you develop an edge? How can you obtain a competitive advantage?
It comes down to the quality of the ‘database’ in your head, and how well you process the information.
This determines your ability to make new connections between existing pieces of information.
***
Structure your database
The better structured the database in your head, the easier you can access the information to make new connections.
But how can you take in and process more information to begin with?
‘Chunk’ the information.
This means you’re grouping information that belongs together — because they share certain patterns or principles. Think of it as structuring your database.
You can only store so many ‘mental files’ in your brain, but are less limited in the amount of information within each file.
The key is for the information within each ‘file’ to be logically linked.
If you can then access each file as though it were a single piece of information, you’ve got an edge.
***
How to cultivate intuition
With practice, this process becomes increasingly intuitive.
Put differently, you’re not thinking about the concrete steps involved.
The processing becomes subconscious — the inevitable result of the sheer volume of information you must be able to usefully process to reach the top of your field.
As Josh Waitzkin says in “The Art of Learning”:
“Once we reach a certain level of expertise at a given discipline and our knowledge is expansive, the critical issue becomes: how is all this stuff navigated and put to use?”
Generalising his process, you start with the fundamentals so that you gain a deep understanding of the principles of your chosen discipline. Then:
“you expand and refine your repertoire, guided by your individual predispositions, while keeping in touch, however abstractly, with what you feel to be the essential core of the art […]
“What results is a network of deeply internalized, interconnected knowledge that expands from a central, personal locus point.
“The question of intuition relates to how that network is navigated and used as fuel for creative insight.”
With time and experience, you acquire more data. You can also make deeper and better connections — connections others may have missed.
In other words, you cultivate intuition.
You’re putting yourself in a position for remarkable performance with limited conscious effort.
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The mechanics of creativity
Often, creativity doesn’t mean coming up with ideas of staggering originality.
Rather, take existing information as your starting point, then mould it to fit your own personality.
Let’s break down the mechanics of creativity:
1⃣ Acquire the knowledge.
2⃣ Internalise this knowledge so deeply that you can access it without thinking about it.
3⃣ You then make a discovery — a leap that takes what you know one or two steps further.
4⃣ Find the connection between that discovery and what you know. It must exist.
5⃣ Figure out the technical components of your creation.
6⃣ Use those components to add your discovery to your existing knowledge, and trigger your creation at will.
Not all that different to the mechanics of intuition!
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Key take-aways
1⃣ Imitate before you innovate.
2⃣ Free, useful information is abundant. So, consider how you’ll get more, or something different, out of it than others.
3⃣ Edge lies in noticing things others miss. Pay attention to detail. Study hard, and study deep.
Standing out from the crowd takes hard work over many years. So, remember to find fulfilment in the process itself.
The point is never the destination.
The point is the journey.