Patterns are everywhere
Patterns are everywhere; some may be more complex than others, but the majority of things/activities hold some type of pattern.
Pattern recognition is a skill that we are all born with
We are all born with the ability to pick up on patterns. Straight from the start, from birth we begin to pick up on patterns and add them to our knowledge accounts. While we can all pick up on things, I believe that there are also some things that we each specialize in pattern-wise.
Why do I say this?
Take an extremely social person for instance. You know, a person who can change their wording or tone at a moment’s notice. These people have been around/ dealt with people long enough to understand what goes and what doesn’t. They have developed a tacit understanding of the way that people operate and things th-
at they like/dislike. Have you ever noticed that? The way that certain people can just change their behavior at a moment’s notice? They have utilized our natural talent for pattern recognition.
Honestly, this is a skill that even our pets have
Take my dog Jake. Although he may not be as quick with certain things, such as food (He, for some reason likes to eat anything that he can get his paws on and throws up frequently). He quickly notices the things that get him reprimanded, and takes great care not to do them while a member of the family is around. He’s also noticed the things that get him adoration or treats. He’s noticed that when he “lets us know” that he must use the bathroom, we usually have a treat waiting for him when he gets back inside the house. This is fascinating isn’t it? The fact that my dog, my freaking dog, can pick up on patterns and exploit them at will.
Immersion can help with the process
I believe that this can be said about almost anything. A person who immerses themselves in a topic will eventually pick up on certain patterns. They will notice the things that they can do, the things that they can’t do, and the things that they can exploit.
One of the things that I’ve noticed has really helped with my pattern recognition in trading, is immersion in the market. Watching it almost every day, and paying attention to the movements on the chart, level 2, and within the companies themselves (SEC filing, News). Now, I’m noticing the things that give the charts relevance and am on my way to developing a profitable edge.
Immersion is the key
This is how we learn, through immersion. With that in mind, these patterns can’t be noticed by sitting on the sidelines. We must be present and soaking up every piece of information that we can, which is what we do. (Actively participating) The patterns are there, we just have to open ourselves up to them Which is why immersion is key, it allows us to be present when profitable edges present themselves.
P.S. I also think that it’s possible to get a better understanding of almost anything if we just try to find the patterns. If we form generalizations that we can later go back and elaborate on as we add on to our knowledge base.