29 Aug '11, 7am
Knowledge versus Competence
I hear and I forget. I see and I remember. I do and I understand – Confucius There are three methods to gaining wisdom. The first is reflection, which is the noblest. The second is imitation, which is the easiest. The third is experience, which is the bitterest. – Confucius Above are 2 quotes from Confucius to act as my backdrop for my post today. What is the difference between Knowledge versus Competence? If you take someone relatively new to the stock market and give him/her a pop quiz on stock market terminologies – be it fundamental or technical – I bet he/she will score highly in this quiz! If we repeat the same quiz on old-timers in the stock market, they will not score too highly as their answers probably don’t fit the “standard” answers… Why? These veterans would have “internalized” or “adapted” the theories and terminologies to reflect their real life experience; ...