Your Technical Analysis Course on How Losers Think
Here we'll continue looking at losers and how they think with our technical analysis
Going long in the market is something his mind has a fondness for . He thinks that it's a
good time to purchase if the prices fall . The budding trader is a price level trader rather
than a price movement trader . He thinks in terms of value, not in terms of value
movements . When there are declines, he buys .
Everyday logic does not work in the market . The loser thinks that his natural reaction to
news is invariably correct . In most cases, the opposite is going to be true. Our natural
reaction to news is invariably wrong . A loser is attracted mentally to society's negative
news output. He goes with a knee jerk reaction in exciting times. With the news he'll slip
into the market rather than getting in against the news. His fascination can't be stopped
with publicized bullish and bearish events . His mind is not attracted by markets that are
dull . 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 of the "cheap" price -
simply because his mind says the price is cheap .
His mind gets so taken away with struggling and misery , that it becomes chained and
entrapped in its own inertia . The loser hasn't found out how they should think by using a
technical analysis course.
There is no thinking in the mind of a loser. It doesn't think, although it's supposed to. It's
entrapped by emotion . It's processes are over&shy;whelmed by fear, greed,
insecurity, unawareness . 85% of the people on earth don't think according to sociologists
. Of the remaining 15%, 13% think they think and the remaining 2% think . Got that ?
Those that really think only amounts to 2% of the world's population! And, it's got
nothing to do with being stupid, or bright . Stupid people can think but they don't ! An
interesting corollary here is that the 2% thinkers actually approximate the percentage of
commodity traders who are consistently successful year after year . The thinking 2% ,
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 . The percentage that only think they think, involve
themselves with all the technical wiggle-waggles of chart formations . They become a pro
at trading - especially after having recent and short lived successes and they feel they
have the holy grail that will keep them being successful . At the back of his mind is fear, -
insecurity , - all the behavioral patterns that are non productive that have been engrained
into them for years . He knows that they are still there . And then there is a leap of the
market that grabs him, and his roots are shaken.
Without thinking , Mr. 13% reverts back to the remaining 85% who do not think-at all .
He thinks that everything around him is conspired against him . Instead of thinking about
the experience, he feels it . Fear of worries, the future, insecurities, and uncertainties , get
rid of rational thinking and he exposes himself without thinking , - to risks, getting back
in the market, and biting the bullet , since he thinks that a stance that is aggressive , (Mr.
Macho) that a profit will be returned by struggling, which will allow him to start over
(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 occurred in the market place.)
This is sad . But the ratio of non thinkers to thinkers is not going to change .
In future discussions in our technical analysis course series we'll look at the winner's way
Charles Drummond is a Canadian trader who has written nine books about trading and
has created a technical analysis course called “Drummond Geometry." His biography and
further information about his work can be found at the technical analysis course website.