This is the profound effect BWILC has on me and in essence is what it is all about.
Throughout the learning journey, while going through the book, it seem to me that a pandora's box had been opened. There were certain doubts that I had in trying to figure out that there was something not quite right in the conventional theory of successful trading, pre-BWILC. For example, I always felt that we need to go to a higher time frame in order for a more stable environment, where noise in the market could be put in better perspective. My attitude has been one where I took everything I see and hear with scepticism.
I love the analogy of the casino. As a trader, we should strive to be the casino rather than the player. As the casino, you have that edge albeit a small one. If you play your cards right, and exploit all factors to maximise your edge, chances are you would emerge as the winner more times than not.
How well does one exploit the edge? That question is answered in the methodology as taught in BWILC.
Conventional teachings stress the need for simplicity. They argued that with a step by step instruction, there are less room for mistakes and success is almost guaranteed. As humans, we were taught that there's beauty in simplicity. We want and even crave for instructions in life to be laid out in a simple to follow way.
Well, simplicity does not work if you want to be successful in trading.
Think about it. If all we need to be successful in trading is by following simple instructions, most trader would already have been profitable.
But sadly that's not the case.
BWILC explained that to be successful, we have to understand both the big picture and the small ones. I agree with the logic that to be successful in trading, we have to understand who are the major players and what they are thinking as ultimately, they are the ones who can move the market.
Several mind changing concepts are explored. The one that intrigues me the most is the upside down approach to taking profit and cutting loss. Also the unconventional way of looking at risk reward and it's application of gearing. To me, the concept of stop loss as explained in BWILC is the hardest to grasp. It's difficult because a certain degree of discretion is needed, but I think that our confidence will increase as we progress and delve deeper into the understanding of our chosen market.
I have enjoyed tremendously my learning journey so far and look forward to more.
