Broker Training and Education

Here we’ll continue looking at losers and how they think with our stock technical analysis course series.

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 . 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. He makes purchases on days there is a decline.

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 reactions that are natural tend to be wrong. The loser is mentally attracted to the negative news output of our society . He goes with a knee jerk reaction in exciting times. He will slip into the market with the news rather than against it . He cannot stop himself from becoming more and more fascinated with publicized bullish and bearish events . His mind just does not "cotton" to dull markets . 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 , only because it is cheap – just due to his mind saying that the price is cheap.

Struggling and misery are enjoyed and his mind gets so caught up with this, that his mind gets entrapped and chained in inertia of its own. This person hasn’t learned the way to think with a stock technical analysis course.

The mind of a loser doesn’t think . It should, but doesn’t . It’s entrapped by emotion . The mind’s processes become overwhelmed by unawareness, fear, insecurity, and greed. According to sociologists . 13% of the leftover 15% think that they think, but only 2% really think. Imagine 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. Stupid people can think but they don’t ! It is interesting to find out that the 2% thinkers actually approximate the percentage of commodity traders who are consistently successful year after year . The thinking 2% , know the price movements, the market, the markets reaction and fundamental factors that underpin a trend , and are well-disciplined, almost bored, without fear/ and know the game in the spirit of fair, good and bad bets . The 13% who think they think , involve themselves with all the technical wiggle-waggles of chart formations . The are the "pros" – especially when they have a recent but short lived success 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 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 his roots are shaken.

Involuntarily , 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 feels this experience, rather than thinking about it . All of his fears, get rid of rational thinking 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 , which will allow him to start over again.

( He is one that detests going home with bad news for the wife. During this event emotions grip him , just as occurred in the market place.)

It is sad, very sad . But the ratio of non thinkers to thinkers is not going to change .

In the future in this stock technical analysis course series we’ll look at the winner’s way of thinking .