How Losers Think - Technical Analysis Course Part Ii
Here we'll continue looking at losers and how they think with our technical analysis course series.
His mind has a predilection to going only long in the market . He figures that if prices come down, then that's a good time to buy . Rather than a price movement trader, a budding trader happens to be a price level trader . Terms of value is the way he thinks, not about value movements. When there are declines, he buys .
In the market, everyday logic doesn't work . Losers believe in the correctness of their natural reactions. In most cases, the opposite is going to be true. Our reactions that are natural tend to be wrong. Negative news output in society mentally attracts a loser . He knee-jerks in times of ebullient excitement . Instead of going against the news, he slips into the market along with the news . He can't keep from becoming fascinated with publicized bullish and bearish events . Dull markets just don't attract his mind. He always busy on emotion on up days . When a topping formation occurs, his herd instinct makes him purchase on the first reaction , simply because it's "cheaper" - just because the price is cheap according to his mind .
His mind is so caught up with enjoying misery and struggling to exist , that its own inertia traps and chains it . The loser hasn't found out how they should think by using a technical analysis course.
The losers mind does not think . It's supposed to. But it doesn't . Emotion entraps it . Greed, unawareness, insecurity, and fear overwhelm the processes of the mind . Sociologists claim that 85% of all the people on planet earth do not think . Of the remaining 15%, 13% think they think and the remaining 2% think . Got that ? 2% of the total world population actually think ! This has nothing to do with being either bright or stupid. Even stupid people can think - it's just that they don't ! It is interesting to find out that the same percentage, 2%, correlates to the amount of traders that succeed year after year in commodity trading . The thinking 2% , know their market, price movements, reactions to factors, and more, and are disciplined, about bored, and they have no fear of the game . The 13% who think they think , get involved with technical chart formations. They become a pro at trading - especially as a result of a short-lived, recent success and they think they will continue to be successful with their "holy grail". Insecurity and fear is in the back of his mind, - all the non-productive behavioral patterns engrained since youth . They lurk around and he knows they are still there. And then there is a leap of the market that grabs him, and shakes him, once again to his very roots .
Involuntarily , Mr. 13% ends up back with the other 85% that don't think. He thinks that everything around him is conspired against him . Instead of thinking about the experience, he feels it . Fear, fear of the future, uncertainties, worries, insecurities , obviate all rationality and he exposes himself without thinking , - to risk, to plunging back into the market, biting the bullet , since he feels that an aggressive stance , (Mr. Macho) that the struggle will result in a return to some profit , with which he can start all over again .
(This is the man who just hates going home to his wife with bad news . He is gripped by emotions during this event, just as he was when he was at the market place .)
This is sad . But the ratio of non thinkers to thinkers is not going to change .
In the future in this technical analysis course series we will talk about how the winner thinks .
by: Charles Drummond
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