|Scg8866t is not sure whether he should put what he knows into action.|
I realized that although knowledge is crucial, it has to ultimately be followed through by action. Knowledge doesn't necessary leads to action, so if one is confident with his/her knowledge, one has to be discipline enough to act on what they know. Every buy/sell, stop loss/profit take, are embedded with emotional bias, one has to have enough will to overcome it.
The market operates on common sense. I believe the best approaches to it should be simplistic and clear. One does not need a multitude of complex indicators and trend lines to analyze market behavior. A simplistic analysis to me is a better analysis.
Self discretion is also very important. Failure is often resulted from the persistent temptation to call every possible market turn, along with the duration of every move a security is likely to make. This to me, is a misleading belief and will very often result in devastating failure. Most analysis should be focused on identifying major turning points rather than predicting the duration of move. Pring wrote that there is no known formula on which consistent and accurate forecasts of this type can be based.
If the technical position has not changed, the original opinion should not be changed either. Which means if the indicators from your analysis is not attuned with the view of the majority, you should still stick to it, until the market/indicator says otherwise.
Remove as much emotion from the trading and investing process as possible. If one has made a mistake, a mental imbalance will most likely compound the potential for more mistakes. Which means one has to admit a mistake when it occurs. The stock market is not an exam, but rather a pool of sentimental flux. Anyone who tries to fight the verdict of the market may suffer the consequences.
Most of what I have mentioned here are psychological mindsets that one can adopt. I believe if one implement what one knows on something with discipline, the whole process will be more efficient.