Is trading an Art or a Science?

What do these dudes have in common:

• Edison
• Dylan
• Einstein
• Picasso

No, they’re not the latest NFT collection.

Although that would be rad 🤙

They’re scientists and artists. (really, who tf is Einstein?!?)

One of them invented the lightbulb. One of them made oil paintings. One of them introduced The Beatles to drugs which eventually spawned several (or all) of their #1 hits. 👀

Scientists and artists ARE very different tbh.

One is practical. The other is theoretical.

One loves numbers. The other loves colors.

One is like Rahul Dravid. The other is like Hardik Pandya.

They can’t be any more different.

But trading, yes TRADING, has a lot to do with science and it has a lot to do with art as well.

Trading is a bit too complicated. Let’s break it down first,

“Trading involves buying and selling of a financial instrument with the aim to make a profit. There are a variety of financial instruments that measures the value of assets. These instruments determine if the future value of those assets will go up or comes down.”

So, where do science and art come in?

→ Science comes from analysis, the science analysis the value of the asset that is going to be in the future.

→ Art comes from the deciding factor if or not you are going to either buy or sell those assets.

Why trading is a science?

I know ya’ll never paid attention to 10th standard P C M or B. So, imma break it down for ya.

Science involves coming up with a theory, testing it through observation, and proving or disproving it.

Let’s say your theory is, that your neighbor steals your doodh packet each morning.

You test this theory by:

• Talking to the doodhwala
• Spying on your neighbor
• Putting a tracker on the packet

And if that rascala actually stole your milk, you report him to the doodh ka policewala a.k.a the policewala.

The policewala uses science involving observation → numbers → data → facts.

This is exactly what a trader does when testing a new trading strategy. That is if he doesn’t blow up his capital.

Science figures out the principles that govern chaos. And the crypto market is kinda filled with chaos.

Just imagine what a NAIVE crypto trader has to deal with.

But a SEASONED trader understands the noise, observes it to find the signal, and trades it.

He’s a smooth operator IYKYK.

Here is a few scientific mumbo-jumbo a trader looks at:

• Price and volume
• On-chain data
• Sentiment indicators
• Social indicators
• Elon Musk is say

Ngl, that last point is mad important.

But even with all this, a bunch of creativity is required.

Why trading is art?

Art consists of two things — drive and expression.

And of course a broken heart. I mean what art has not been created cuz of a broken heart. 💔

Now, we’re not saying that all traders are like Rani from Queen.

They’re hella heartbroken.

But they’re hella creative.

I mean science can get you far. But it’s the creative drive that actually makes you pull the trigger, despite staring at a 🤏 liquidation price.

This is all about conviction.

Conviction in actually taking risks and chasing rewards.

Unlike a Shammi Kapoor movie, trading is not all black and white.

Nothing is as accurate as Rajni’s aim.

There are actually a ton of creative decisions involved.

That’s where trading becomes an art. One that has to be felt, sensed, and invoked, rather than just computed through an algorithm.

Real talk: So what is it?

Trading is a mix of both.

You gotta have the numbers. But you gotta spot the colors.

You gotta get the data. But you gotta avoid the dhokha.

You gotta be smart. But not as smart as a Sharma-ji ka betta.

Unlike every other Indian papaji's advice to you, here’s our advice when it comes to trading, “Betta, be both a scientist and an artist.” 🤝

Density is offering 10 USDT for first time traders upon completing their KYC and Bank verification. You can trade for free, don't miss out on this opportunity. Please do contact us on whatsapp +91 90350 92634 for any queries you have.

You can learn more about the blockchain industry at our Density Blogs.