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How Learning Actually Works

In this video, the speaker discusses how learning actually works based on real research. He explains that our brain has evolved to be efficient and that efficiency extends to the way it learns. The speaker also compares explicit learning (like taking a math class) with implicit learning (like playing a sport or video game).

Types of Learning

• Our brain has evolved to be efficient in the way it learns.

• Explicit learning is purposefully remembering little bits, like in a classroom setting.

• Implicit learning happens without direct awareness, like when we learn to ride a bike or swim.

• Trading requires both types of learning: explicit and implicit.

Combining Types of Learning

• Courses and videos about patterns, technical analysis, and trading strategies can help with explicit learning.

• However, explicit learning alone will not make you good at trading.

• Discretionary traders are successful because they have implicitly internalized price action as a subconscious language.

• Watching successful traders can provide inspiration but cannot replace putting in the work and time through actual trading.

Final Thoughts

• It is common for proprietary trading firms, hedge funds, and investment banks to have discretionary traders who achieve high levels of success year after year through active trading.

• The speaker emphasizes that understanding how we learn is crucial for aspiring traders who want to avoid wasting years on useless information.

The Role of Intensive Repetition in Learning

This section discusses how intensive repetition helps individuals become sensitive to complex and noisy patterns. It explains that young children learn to speak grammatical English before they can verbalize the rules of English grammar through intensive repetition.

Intensive Repetition and Learning

• Intensive repetition helps individuals become sensitive to complex and noisy patterns.

• Young children learn to speak grammatical English before they can verbalize the rules of English grammar through intensive repetition.

Serial Reaction Time Experiments

This section discusses serial reaction time experiments, which show that subjects can learn complex statistical probabilities in sequences of data with enough repetition and feedback.

Serial Reaction Time Experiments

• Serial reaction time experiments show that subjects can learn complex statistical probabilities in sequences of data with enough repetition and feedback.

• Subjects can anticipate events in those sequences but cannot verbalize the complex patterns that they have internalized.

Trading Experience: Internalization of Non-Communicable Information

This section explains what trading experience is regarding explicit and implicit memory. It argues that trading experience is the internalization of non-communicable information used to drive decisions while falsely believing it is the relatively simple system being used causing success.

Trading Experience: Internalization of Non-Communicable Information

• Trading experience is the internalization of non-communicable information used to drive decisions while falsely believing it is the relatively simple system being used causing success.

• Expert traders use a system that a kindergartner could follow, but their success comes from intuition they cannot put into words.

• Successful traders have learned the markets subconsciously and have learned price action as a language that cannot be spoken to anyone else.

The Role of Technical Analysis in Trading

This section discusses the role of technical analysis in trading. It argues that support and resistance don't show anything you weren't already looking at, and experience is the separator between successful traders and others.

The Role of Technical Analysis in Trading

• Support and resistance don't show anything you weren't already looking at.

• Experience is the separator between successful traders and others, not because veterans are better at drawing lines but because they're making intuitive decisions that can't be quantified into an algorithm.

• If your trading was profitable because of a system alone, then you would just code it. But successful traders are using intuition that they can't put into words.

Discretionary Trading vs Algorithmic Trading

This section discusses discretionary trading versus algorithmic trading. It argues that top traders are making decisions and being profitable in ways that they aren't able to communicate to us.

Discretionary Trading vs Algorithmic Trading

• Top traders are making decisions and being profitable in ways that they aren't able to communicate to us.

• Day Trader Next Door may have some indicators up on the chart like Keltner channels, but he's not actually making trades based on them. His system is making educated guesses about how price will react to certain levels yet even that can't be quantified.

Learning to Trade: The Importance of Time, Dedication, and Repetition

In this section, the speaker emphasizes the importance of time, dedication, and repetition in learning how to trade. He also discusses the value of focusing on real-world experience rather than relying solely on videos or courses.

The Value of Real-World Experience

• Money is what people sell as shortcuts to make money.

• Trading with real money and good risk management is essential for becoming consistently profitable.

• Watching videos does nothing except either inspire you to be better motivate you or make you feel like giving up.

• You'll never watch a video or hear a piece of advice that will suddenly make you able to trade successfully without putting in a ton of work.

Avoiding Sunk Cost Fallacy

• Some traders won't change their ways because they've invested so much time into videos that aren't actually benefiting them.

• It's important to focus on what's best for your future rather than what you should do next based on what you've done in the past.

Identifying Valuable Videos

• Some videos have value related to behavior in the markets like Mark Douglas or Trader Tom.

• These people had/have value in their work because they said things that have real applications to my behavior.

• Other videos about trading using moving averages, candlestick patterns, and other indicators are not helpful for learning price action.

Learning Through Time, Dedication, and Repetition

• Learning how to trade is like learning how to play the piano; it requires time, dedication, repetition, and real-world experience.

• Procedural memory or implicit memory is often difficult to explain; it forms without effort through repetition and practice.

Trading Course for Beginners

In this section, the speaker talks about how trading courses are not a shortcut to learning trading and that intuition is key to becoming successful in trading.

Intuition is Key

• Successful traders have internalized price action as a language.

• Trading systems do not make traders profitable; intuition does.

• Selling a trading course to beginners who lack intuition is nonsensical.

Learning Trading Takes Time

• There are no shortcuts to learning trading; it takes time and practice.

• Learning trading by watching videos alone is not enough.

• Some traders may become successful in a year, while others may take several years.

Supporting the Mission on YouTube

In this section, the speaker thanks their patrons for supporting their mission on YouTube and offers free stocks through Weeble.

Thanking Patrons

• Patrons receive exclusive early video access and access to secret Discord channels.

• Supporting the speaker's mission on YouTube helps them create more content.

Free Stocks with Weeble

• Depositing one penny through the link in the description provides users with free stocks.