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Part 2 How Do Losers Think - Etf Trading
By Mike | August 23, 2010
Here we’ll continue looking at losers and how they think with our etf trading 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 thinks in terms of value, not in terms of value movements . He buys on days of declines .
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 natural reaction to news is invariably wrong . Negative news output in society mentally attracts a loser . When there is ebullient excitement he has a knee jerk reaction . Instead of going against the news, he slips into the market along with the news . He can’t keep from becoming fascinated with publicized events that are bearish and bullish. Dull markets just don’t attract his mind. He always busy on emotion on up days . He busy on the first reaction because of the herb instinct in a topping formation, simply because it’s "cheaper" - 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 it becomes chained and entrapped in its own inertia . This person hasn’t learned the way to think with a etf trading course.
There is no thinking in the mind of a loser. It’s supposed to. But it doesn’t . The mind is entrapped by emotion. It’s processes are over­whelmed by fear, greed, insecurity, unawareness . at least 85% of people really don’t think. Only 2% of the left 15% think, while the other 13% only think that they think . Can you believe it? 2% of the total world population actually think ! Being bright or stupid has nothing to do with it . People that are stupid can even think but they usually do not! It is interesting to find out that 2% of people who think is about the same percentage of successful commodity traders . The 2% who think , 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 involved with technical chart formations. The are the "pros" - especially after having recent and short lived successes and feel that they have found the holy grail and are capable of finally reaping revenge, and garnishing continuous success . At the back of his mind is fear, - insecurity , - all the non-productive behavioral patterns engrained since youth . He knows that they are still there . And then there is a leap of the market that grabs him, and he gets shaken to his roots .
Involuntarily , Mr. 13% goes back to join those that don’t even think . He thinks that everything around him is conspired against him . 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 struggling will bring profit , and he can start over with the profit .
(This is the man who just hates going home to his wife with bad news . Emotions grip him, during this event , just as he was when he was at the market place .)
It’s so sad. But there won’t be a change of the ration of thinkers to those that don’t think.
In other discussions we have in the etf trading series we’ll look at the winner’s way of thinking .
Topics: Investing |
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