Sep

10

How Losers Think - Online Option Trading Part II

Posted In: Personal Finance

Let’s go on talking about how losers think with this online option 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. A price level trader is what a budding trader is, not a price movement trader. Terms of value is the way he thinks, not about value movements. He buys on days of declines .

Everyday logic does not work in the market . Losers believe that their natural reactions are going to be correct . 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 . 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 events that are bearish and bullish. 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 , only because it is cheap - just because the price is cheap according to his mind .

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 online option trading course.

The losers mind does not think . It doesn’t think, although it’s supposed to. The mind is entrapped by emotion. It’s processes are over­whelmed 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 . Can you believe it? 2% of the total world population actually think ! And, it’s got nothing to do with being stupid, or bright . Even stupid people can think - it’s just that 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 their market, price movements, reactions to factors, and more, act bored, have good discipline, and never fear, since they know the game. The percentage that only think they think, get involved with technical chart formations. The are the “pros” - especially as a result of a short-lived, recent success and they think they will continue to be successful with their “holy grail”. At the back of his mind is fear, - insecurity , - all those patterns of behavior that are not product that they have learned since their youth. He knows that they are still there . And, the market leaps back up to him, and grabs him , and he gets shaken to his roots .

Without thinking , Mr. 13% goes back to join those that don’t even think . He believes that there is a conspiracy against him, by the market itself, by the floor traders, - those all around him . He feels this experience, rather than thinking about it . Fear, fear of the future, uncertainties, worries, insecurities , obviate all rationality and he without thinking exposes himself, - to risks, getting back in the market, and biting the bullet , since he feels that an aggressive stance , (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 is sad, very sad . But there won’t be a change of the ration of thinkers to those that don’t think.

In the future in this online option trading series we will talk about how the winner thinks .

Charles Drummond is a Canadian trader who has written nine books about trading and has created a online option trading called “Drummond Geometry.” His biography and further information about his work can be found at the online option trading website.

Article Source: How Losers Think - Online Option Trading Part II