I love to cook. And that’s predominantly because I love to eat.
Cooking is all about putting different flavors together in a way that delights all five senses.
And yes, one can cook from a set recipe and get a good outcome. But it’s only be learning why different ingredients and cooking techniques work when put together are you able to both understand why the recipe works and to improve on it, especially when the ingredients we have vary from region to region and season to season.
I find the same is very true in trading and investing. There are core trading strategies that have proven over time that they work – like a good recipe.
But because markets vary (like the ripeness of an avocado or orange does), if you understand the key elements of the strategy, you can understand why it’s working better or worse now than usual – plus you’ll know the small tweaks that can make things work better based on the current market environment.