Today's sermon at church began a new series on the application of wisdom as we study the book of Proverbs. I was struck by a few things and their parallels to trading:

The pastor defined wisdom as:

* A skill derived from living

* The ability to interpret the world correctly

* Being able to speak into the world, have an impact, and affect change

A trader might define wisdom as:

* Years of trading and experiencing the many ever changing cycles

* Having superior analytics or research

* Being big enough to move (or manipulate) the markets

The pastor went on to discuss what a proverb is and that context/application are important to understand them.

Two quotes stood out for me:

"A proverb is true when it is correctly applied"

"Wisdom is discerning the right proverb and applying it at the right time"

That last quote got me thinking about proverbs as being trading rules, set-ups, or some other method of deciding to enter a trade.

How many of us have the wisdom to know that a "proverb" should be ignored because it doesn't apply in this instance? Does this only apply to discretionary traders, or can a systematic trader find ways to apply this wisdom? Could one create a trading program based proverbs? What proverbs are essential for trading right now?





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