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Metaphors are very helpful things.
Metaphors can really cement ideas into our heads. The best teachers are the teachers who can take an abstract, but real concept and give it some form with an accurate metaphor which aptly describes that idea.
Some of the most well-known metaphors, also called ‘word pictures’, are: ‘beating a dead horse’, ‘don’t judge a book by its cover’, ‘elephant in the room’, ‘kicked the bucket’, or ‘800-lb gorilla’. None of these expressions literally mean what is said. These metaphors all point to something beyond themselves.
Let’s take the last one, ‘800-lb Gorilla’. Chances are you’ve never seen an actual 800-lb gorilla in the wild. But if you did, you wouldn’t want to challenge his supremacy over the lady gorillas in his clan. No, you would want to leave that alpha alone to his harem and mosey on down the mountain. 800-lb gorillas do what 800-lb gorillas want to do.
In the same way, some companies are known as 800-lb gorillas. For instance, Google – now called ‘Alphabet’ is an 800-lb gorilla. Google can pretty much do whatever they want within the law and within reason. They are the 800-lb gorilla of the online search business. They’ve proven their supremacy by acquiring major businesses like YouTube, Motorola, Postini, and many more. They have the cash and they it deploy at will. They are an 800-lb gorilla in tech.
But enough about metaphors, already, what does this have to do with trading?
I’m glad you asked.
The whole reason I bring this up was something my trading coach brought up in his training program. I take no credit for this, I’m simply relaying what he told all of the students in my training class.
The Iceberg Metaphor in Trading
Learning to trade, and really learning to do anything worthwhile, is very similar to the concept of an iceberg. In other words, a successful trader is like an iceberg. |