Blue Pill or Red Pill? Choose your side ... and do it wisely.
“You take the blue pill, the story ends. You wake up in your bed and believe whatever you want to believe. You take the red pill, you stay in Wonderland, and I show you how deep the rabbit hole goes." - the exact line that Morpheus used when offering Neo a choice between two options.
You may wonder how this legendary Matrix reference is related to the trading industry. Believe it or not, even though one of our favourite mottos is “beauty lies within simplicity”, trading can get much deeper and more complex (deep down the rabbit hole) than the traditional textbook method.
Firstly, we have the Blue Pill. “Mike Johnson is indicating that we should wait for a crossover of 50 and 200 Exponential Moving Average levels before executing positions”. Yes, we have all been here. The thing is, 99% of the trading courses and most of those YouTube and TikTok gurus make you believe that trading is as easy as buying when a Double Bottom is formed, selling once a Head&Shoulder pattern has been identified and so on. Obviously, if it was that easy, then everyone would have succeeded in this industry, right? “Let me spoil my charts with hundreds of indicators. Surely, if 80% of them are indicating that the market is bearish, then we should definitely go short”. Yes, been there too. Oh, and let’s not forget this one: “I will just buy at support and sell at resistance, and keep it consistent until I am profitable in the long run”. Wait, but if I have learned all that from Mike Johnson, and he claims to be an 8-digit professional trader with an experience of 20 years, why am I not succeeding? If I follow everything he says, then by the same logic, shouldn’t I be profitable just like him?
And that is exactly why we have the Red Pill. The pill that frees us from the enslaving control of the machine and guru-generated dream world. The dream world is the world where trading is super simple and is as described in the textbooks. However, going down the rabbit hole, one can realise that things are more detailed and structured than they might seem, and that more factors should be considered in analysing, executing, and monitoring setups. While a blue-pilled trader is considering an execution upon a formation of a Double Bottom, a red-pilled participant of the market is waiting for a quick spike below that pattern formation and liquidity grab before pressing the "BUY" button and riding the price to the upside. Analogically, alongside with plain support and resistance levels, a red-pilled trader uses the Fibonacci retracement tool mixed with his/her conscious intuition and years of experience to form-up a bias and enter the markets. And so the list goes on.
One thing to indicate: we are not saying that the methods listed under the Blue Pill category are useless and inefficient. As long as it works for you, you can continue following your own plan and strategy without having to give a damn about opinions and ideas of others. We are just trying to emphasise, that a trader with more experience and knowledge in the markets, and with a more detailed and structured approach of the charts will be a step ahead of those that blindly generate ideas by taking a quick look at the charts posted by others (word of mouth), following every single chart pattern suggested by John Doe on his book about the sorcery of trading.
One last mention, it all boils down to two things: consistency and persistence. No wonder that as long as you keep working on becoming a better version of yourself on and off the markets, your skills will develop further and help you with what we call "opening the 3rd eye". With time, you will make more rational decisions, you will have a clearer sight of the market, you will be more powerful psychologically. Until then, keep grinding till 3AM, keep making mistakes, stay hungry and curious. And remember one thing, only the strongest survive.
With all that being said, we would love to see a nice poll in the comment section below. Which pill are you taking: the Blue Pill or the Red Pill? Feel free to comment below and let us know your thoughts and opinions.
Have a great weekend ahead.
Investroy.
You may wonder how this legendary Matrix reference is related to the trading industry. Believe it or not, even though one of our favourite mottos is “beauty lies within simplicity”, trading can get much deeper and more complex (deep down the rabbit hole) than the traditional textbook method.
Firstly, we have the Blue Pill. “Mike Johnson is indicating that we should wait for a crossover of 50 and 200 Exponential Moving Average levels before executing positions”. Yes, we have all been here. The thing is, 99% of the trading courses and most of those YouTube and TikTok gurus make you believe that trading is as easy as buying when a Double Bottom is formed, selling once a Head&Shoulder pattern has been identified and so on. Obviously, if it was that easy, then everyone would have succeeded in this industry, right? “Let me spoil my charts with hundreds of indicators. Surely, if 80% of them are indicating that the market is bearish, then we should definitely go short”. Yes, been there too. Oh, and let’s not forget this one: “I will just buy at support and sell at resistance, and keep it consistent until I am profitable in the long run”. Wait, but if I have learned all that from Mike Johnson, and he claims to be an 8-digit professional trader with an experience of 20 years, why am I not succeeding? If I follow everything he says, then by the same logic, shouldn’t I be profitable just like him?
And that is exactly why we have the Red Pill. The pill that frees us from the enslaving control of the machine and guru-generated dream world. The dream world is the world where trading is super simple and is as described in the textbooks. However, going down the rabbit hole, one can realise that things are more detailed and structured than they might seem, and that more factors should be considered in analysing, executing, and monitoring setups. While a blue-pilled trader is considering an execution upon a formation of a Double Bottom, a red-pilled participant of the market is waiting for a quick spike below that pattern formation and liquidity grab before pressing the "BUY" button and riding the price to the upside. Analogically, alongside with plain support and resistance levels, a red-pilled trader uses the Fibonacci retracement tool mixed with his/her conscious intuition and years of experience to form-up a bias and enter the markets. And so the list goes on.
One thing to indicate: we are not saying that the methods listed under the Blue Pill category are useless and inefficient. As long as it works for you, you can continue following your own plan and strategy without having to give a damn about opinions and ideas of others. We are just trying to emphasise, that a trader with more experience and knowledge in the markets, and with a more detailed and structured approach of the charts will be a step ahead of those that blindly generate ideas by taking a quick look at the charts posted by others (word of mouth), following every single chart pattern suggested by John Doe on his book about the sorcery of trading.
One last mention, it all boils down to two things: consistency and persistence. No wonder that as long as you keep working on becoming a better version of yourself on and off the markets, your skills will develop further and help you with what we call "opening the 3rd eye". With time, you will make more rational decisions, you will have a clearer sight of the market, you will be more powerful psychologically. Until then, keep grinding till 3AM, keep making mistakes, stay hungry and curious. And remember one thing, only the strongest survive.
With all that being said, we would love to see a nice poll in the comment section below. Which pill are you taking: the Blue Pill or the Red Pill? Feel free to comment below and let us know your thoughts and opinions.
Have a great weekend ahead.
Investroy.