What makes an expert? And how can traders develop their own expertise? Three elements:
1) “Measures of general basic capacities do not predict success in a domain”
Experts cannot be distinguished by superior intellects or other cognitive talents.2) “The superior performance of experts is often very domain specific and transfer outside their narrow area of expertise is surprisingly limited”
Being an expert in one domain does not predict expertise in others; a person can be a highly accomplished trader, but not expert in other areas. Think “niche” — the successful trader has found a particular sphere of success that expresses his skills and interests.
3) “Systematic differences between experts and less proficient individuals nearly always reflect attributes acquired by the experts during their lengthy training”
The expert is one who has undergone a structured, deliberate process of training that builds competencies, offers extensive feedback, and draws upon intensive effort over time to internalize knowledge and skills. (more…)
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What makes an expert? And how can traders develop their own expertise? Three elements:Don't Try to Predict Your Own Behavior
“It’s easy to see, hard to foresee.” ~ Ben Franklin
How often have you accurately predicted your reaction to emotion-provoking events in your life?
When the stock market gets volatile as it has been in recent weeks, I am reminded of the irrelevence of risk tolerance questionnaires. If you’ve ever sat down with an investment advisor or financial planner, you’ve likely seen or heard the questions that try to predict how you might react in various stock market scenarios.
For example:
“If your investment portfolio were to fall by 20% in the course of one year, how would you react? Would you A) Do nothing, B) Wait a few months to make a decision, or C) Sell your stocks immediately?” (more…)
Trading Expert
What makes an expert? And how can traders develop their own expertise? Three elements:
1) “Measures of general basic capacities do not predict success in a domain”
Experts cannot be distinguished by superior intellects or other cognitive talents.2) “The superior performance of experts is often very domain specific and transfer outside their narrow area of expertise is surprisingly limited”
Being an expert in one domain does not predict expertise in others; a person can be a highly accomplished trader, but not expert in other areas. Think “niche” — the successful trader has found a particular sphere of success that expresses his skills and interests.
3) “Systematic differences between experts and less proficient individuals nearly always reflect attributes acquired by the experts during their lengthy training”
The expert is one who has undergone a structured, deliberate process of training that builds competencies, offers extensive feedback, and draws upon intensive effort over time to internalize knowledge and skills.
So what might this mean? Here are the good conclusions:
1) The majority of traders are looking for expertise in all (more…)
What makes an expert? And how can traders develop their own expertise? Three elements: