Hey all…have wanted to find and post this story up for weeks now.
The author is a guy named Ed Seykota…one of the greatest trend traders of all time, IMO. he was one of the standouts in jack schwaggers classic best selling book: Market Wizards (the original market wizards)
Among his many achievements
- averaged a 40%+ return for several decades straight on 8 an 9 figure accounts
Turned a $10,000 account into over 14 million in approx 10 years.
I’ve said before, both on this website and to others, that learning to trade is not like learning a math formula. It’s like learning to be a 16th century art expert, a professional fiction writer, or a master cabinetmaker.
This story is the most elegant, concise parable i’ve ever come across that accurately gives real insight into the truth behind the process of learning how to trade successfully. Without further ado…:
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THE JADEMASTER :
"One cold winter morning a young man walks five miles through the snow. He knocks on the Jademaster’s door. The Jademaster answers with a broom in his hand.
“Yes?”
“I want to learn about Jade.”
“Very well then, come in out of the cold.”
They sit by the fire sipping hot green tea. The Jademaster presses a green stone deeply into the young man’s hand and begins to talk about tree frogs. After a few minutes, the young man interrupts.
“Excuse me, I am here to learn about Jade, not tree frogs.”
The Jademaster takes the stone and tells the young man to go home and return in a week. The following week the young man returns. The Jademaster presses another green stone into the young man’s hand and continues the story. Again, the young man interrupts. Again, the Jade¬master sends him home. Weeks pass. The young man interrupts less and less. The young man also learns to brew the hot green tea, clean up the kitchen and sweep the floors. Spring comes.
One day, the young man observes, “This Stone Is Not Jade”
I lean back in my chair, savoring the story. My student interrupts.
"OK. OK. That’s a great story. I don’t see what it has to do with making money. I come to you to find out about the markets.
I want to learn about the bulls and the bears, commodities, stocks, bonds, calls and options.
I want to make big money. You tell me a fable about Jade. What is this? You…"
"That’s all for now. Leave those price charts on the table. Come back next week.“
Months pass. My student interrupts less and less as I continue the story of The Trader’s Window”.
—from The Trader’s Window, ED SEYKOTA
(paraphrased very slightly for clarity by me)
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One of my very favorites… Thanks again Ed.
Jay
Still you have to understand the market and to do deep research and like bruce said “be like water, not a rock” and learn to fight.