Why Your Level of Cognition Can Have a Tremendous Effect on Your Trading Result

There are four levels of cognition:

  1. One does not know what he does not know
    At this level people are normally opinionated, assuming they know everything.
  1. One knows what he does not know
    At this level people have a high degree of self-awareness; they are eager to learn and have an “empty cup” mentality.
  1. One knows what he knows
    At this level people understand the fundamental principles and how to apply them in real situations.
  1. One does not know what he knows
    This is the highest level of cognition. The more people learn, the more they realize that they don’t know. Therefore, they always keep the empty cup mentality and are always open to new learning.

Three ways to lift your level of cognition in trading

  1. Find a trading software that reveals the fundamental principle of the market
    In the real world the majority of people don’t know what they don’t know. Opinionated mentality in trading could lead to losses, sometimes big losses. Setting aside ego and becoming respectful to the market is the first step to trading success.
    AbleTrend trading software reveals the fundamental principle of the market and helps you see the market direction and true support and resistance levels objectively by marking them with colors. Our ample “Trade Setups and Outcomes” case studies are a powerful tool to help you lift your cognition to the highest level so you can trade the market with the greatest harmony.
  1. Lift your level of cognition by execution
    Once you verify the integrity of the trading software, the next step is to put your new cognition into practice. You may feel uncomfortable at first but carry out what you now believe is true, practice, and go through the Trade Setups and Outcomes again and again. As you do so your execution capability will improve. But you must learn by doing. You can only learn how to swim while you’re in the water.
  1. Overcome fear
    Fear of loss is the most difficult thing to overcome in trading. But “the biggest fear is fear itself.” Practice with trade setups in the AbleTrend trade library and ask yourself, “What is the worst that could happen if I do these trades?” Practice by following the rules to set up paper trades and record your trading results. You’ll be amazed to see what your open “empty cup mentality” can bring you.

For your convenience we have established a “Trade Setups and Outcomes” section to practice on. There you will find many trade setups in various markets for both day trading and swing trading. Markets are ever-changing but AbleTrend rules remain the same. Practice the rules again and again, just as a basketball player practices dribbling again and again, until you know how to apply these rules to real-time trading. Ready? Here are some more Trade Setups and Outcomes with AbleTrend trading indicators applied.

With Warm Regards

Grace Wang

AbleSys Corp.


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