Paula Rodriguez
To strengthen performance and strategy, get to know the importance of trial and error learning. When trading forex, setbacks and errors are a vital part of the journey. Despite the ideal goal to constantly profit and avoid losses, forex traders can greatly benefit from the challenges of the market. Through trial and error learning, all endeavours and activities can be used as tools to learn and optimize. For a thriving trading career, find out how trial and error can eventually lead to increased profit, better performance and a more reliable strategy.
What is trial and error learning?
There are many methods you can apply to learn from the market and strengthen your trading system. In a performance-driven career like forex trading, you will need to use effective ways to build and enhance your strategy. One of the best ways to achieve this is to optimize through trial and error learning.Trial and error learning is a problem solving technique that encourages diverse and repeated efforts for success. It is a constructive method to gain more knowledge and form solutions through frequent and varied experimentation. This involves experiencing a number of attempts and setbacks that all turn into progressive growth and enhanced behaviour.According to H. Peyton Young of University of Oxford, a person can learn when testing new strategies and eliminating choices that did not work the previous time. Once successful trial and error learning is applied, the desired outcome can be reached much faster and with lesser errors.The Puzzle Box Experiment by Thorndike
Learning through trial and error has been applied for years most especially in fields like psychology, engineering and technology. One of the experiments that studied trial and error learning was performed by American psychologist Edward Thorndike. He conducted his studies based on research and analysis with animal behaviour.The Puzzle Box Experiment was an examination of the stimulation and response of a hungry cat in a puzzle box. This cat’s main goal was to perform the right action to get to the dish of food placed outside of the box. While being confined in the puzzle box, the cat made many attempts to get out until it finally pulled on the correct string. The cat then received its reward. After performing the same experiment several times, the cat gradually got out of the box much quicker with lesser errors."Responses that produce a satisfying effect in a particular situation become more likely to occur again in that situation, and responses that produce a discomforting effect become less likely to occur again in that situation” - Edward Thorndike: The Law of EffectAccording to Edward Thorndike, an organism’s behaviour changes due to its consequences. With his well-known Puzzle Box Experiment, Thorndike was able to conclude a “Law of Effect” which notes that the key to learning comes from the satisfaction in rewards and the eluding of undesirable consequences. Once you gain a satisfying response from trial and error, you are more likely to repeat these rewarding actions while avoiding the actions that previously led to unwanted results.
Great advantages of trial and error learning
- Minimizes future risks or difficult scenarios
- Encourages better habits that optimize trading performance
- Boosts innovative or creative skills especially in problem solving
- Increases efficiency when working with trading tools and applications
- Strengthens efficiency of a strategy and overall trading system
- Enhances alertness or mental preparedness especially during unexpected challenges
- Improves behaviour and reaction towards losses
- Inspires a more proactive mindset and growth-driven way of thinking
- Allows traders to test and apply forex education into strategy
- Builds better trading character towards every challenging trading task