.jpg)
@markminervini,Livermore, Darvas, O’Neil, @Qullamaggie - all the great traders have a flow to their mastery which cant be taught or explained.But their greatness isn’t born. It is grown. It is learnt.
Here’s how:
Shu Ha Ri is a Japanese martial arts concept that describes the progression of learning
In the "Shu" stage, the student follows the teacher's instructions mechanically, "by the book," without significantly deviating from accepted rules and practices, and without improvising any new techniques. We do it to learn how things work, to make it a habit.
I love this scene from the Karate Kid to depict the Shu reasoning
Most books, including Minervini's, O'Neil's, and Trading in the Zone, are written for this stage. Unfortunately, many traders and fintwits, especially those with larger followings, are unable to cross it and instead spew jargons such as "risk management" and "emotional control.”
In the "Ha" stage the student can question the skills he has learned. WHY is it we do as we do? Can we find a better way to do what we are doing? The student begins to understand the principles at a deeper level and learns how to improvise and break free from rigidly accepted practices
Many of you (if you have taken a few trades or read Mark’s books) are in between Shu and Ha, and now need to start questioning your beliefs on their first principles.
For example, WHY do I need to buy at 52wh, or WHY do I need trendlines on a chart to buy or WHY do you need to limit position size to 25% ?
"Ri" : The student becomes a practitioner at this stage, and is learning from their experiences rather than only from others. They create approaches and methods of their own and adapt what they have learned to their own particular circumstances.
For eg, cooking food:
- At first, we follow the recipe exactly (Shu).
- But when we’ve memorized the recipe, we don’t use it anymore (Ha).
- Eventually, we start free-styling, substituting ingredients according to our own taste, creativity and feeling (Ri - Cook vs Chef)
Same concept can be adopted to any learning process- whether you are competing in the Olympics or washing dishes or trading stocks.This moment from Matrix always give me chills and is a great example of RI
All the great traders mentioned above have gone through the same stages and have developed a flow which is innate to themselves. Its like a Sachin straight drive, or Gulzar poetry or Kasparov Sicilian defense. They were not born with it. It was practised and learnt.
How do you use Shu Ha Ri
One effective way of moving faster through the phases is to have someone teach you. Or rather coach you. Unfortunately the trading domain is filled with more scamsters and content creators than actual traders.
However, I am blessed to know a few, DM me - will connect you to them.
Another effective way is to start with WHY or the value, this will increase your journey past Shu. You may even skip the Shu phase sometimes when doing this. And make sure you and your coach are guided by your WHY, so that you don’t get lost on the way.