subject: Understand How Losers Think with This Technical Analysis Course (Part 2) [print this page] Let's continue our discussion of how losers think in our technical analysis course series.
His mind has a predilection to going only long in the market . If prices fall, he figures that's the right time to buy. Rather than a price movement trader, a budding trader happens to be a price level trader . He doesn't think about value movements, but in terms of value . He makes purchases on days there is a decline.
Everyday logic does not work in the market . Losers believe in the correctness of their natural reactions. The opposite is true . Our natural reaction to news is invariably wrong . The loser is mentally attracted to the negative news output of our society . 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 . His mind is not attracted by markets that are dull . He always seems to be buying on up days, buying on emotion . When a topping formation occurs, his herd instinct makes him purchase on the first reaction , simply because of the "cheap" price - just due to his mind saying that the price is cheap.
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 mind of a loser doesn't think . It should, but doesn't . The mind is entrapped by emotion. The mind's processes become overwhelmed by unawareness, fear, insecurity, and greed. Sociologists claim that 85% of all the people on planet earth do not think . Only 2% of the left 15% think, while the other 13% only think that they think . Got that ? Those that really think only amounts to 2% of the world's population! 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 2% of people who think is about the same percentage of successful commodity traders . The 2% of thinkers, know the market their trading, know the price movements, know the fundamental factors underpinning the trend, and the market's reaction to it , and are disciplined, about bored, and they have no fear of the game . Those who think that they think , get lost with all the chart formations . They become "pros" - especially after having recent and short lived successes 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 . He knows that they are still there . And, the market leaps back up to him, and grabs him , and his roots are shaken.
Without thinking , Mr. 13% reverts back to the remaining 85% who do not think-at all . He has the idea that there is some conspiracy against him, by everyone, from the market to the floor traders. He takes the experience and feels it instead of thinking about it. Fear of worries, the future, insecurities, and uncertainties , obviate all rationality and he exposes himself without thinking , - to risks, getting back in the market, and biting the bullet , since an aggressive stance is what he feels, (Mr. Macho) that the struggle will result in a return to some profit , which will allow him to start over again.
(This is the man who just hates going home to his wife with bad news . Emotions grip him, during this event , just as occurred in the market place.)
It's so sad. But the ratio of non thinkers to thinkers is not going to change .
In other discussions we have in the technical analysis course series we'll look at how winners tend to think.
Understand How Losers Think with This Technical Analysis Course (Part 2)
