It is really amazing to understand what happens deep inside the mind when there is any kind of problem.
We as humans, have an impressive amount of limits and our lives are the clear expression of these limits. I don’t mean that since limits are huge, your life is bad: you could have the best life ever! The problem doesn’t change: you will always have the same limits like other humans.
Then came the day when we decided to trade forex markets. And here comes my article.
Love it or hate It.
You have a problem! And you are totally unable to see it.
Unconsciously you know the problem but consciously you don’t see and accept it.
We are used to have so many habits that we even don’t know what is an habit. But there is ONE thing that stands above all other things: YOU NEED THE OTHERS! Yes because without the others you can’t exist. People exists because there are other people judging them. What if nobody finds you ugly or beautiful? What if nobody says you are smart or stupid? What if nobody knows you, what you do, what you think, the way you express yourself, appreciating your winnings and supporting your failures? You would not exist!
Since you need the others, you will begin to look for others. Who will you meet? You will meet people who have your same point of view, a similar way to dress, same hobby, a similar job etc… in this meanwhile, you are automatically excluding all the others out of you.
So, we find groups of people. The group will try to protect it-self from external intrusions and influences, to keep its equilibrium intact.
This should be 'nothing new' when we talk about our lives, but we must not forget that we are TRADERS (or we want to become one).
Your experience begins with losing and frustration about market’s cruelty. You begin to look for other people who fits your point of view and so then you will unconsciously meet and feel better with all other losers like you.
THE GROUP IS BORN!
Remember: a losing trader will act as that, in everything he does! When talking with people about markets when posting in forums, writing in famous websites, etc. So when you find a strategy, an idea, or anything else written by a loser, you will be attracted by that if you are a loser. While you will not be attracted by those with a different registry of unconscious signal: there is something unconscious that is ‘over the words’ and attracts only people with the same registry.
You will find yourself, surrounded by losers, and you all together will keep losing but you will keep feeling better when you find someone else sharing your common problem: losing and frustration. And you will be unconsciously refusing all solutions!
You see only the problem: losing. When you think, you write, you read, you trade... you only see the problem and you don’t accept the solutions around it, because you are trying to protect you, and your group.
You become your main problem.
Fact is that it’s more easy to see the problem than work to find a solution. Will it be in your charts or in your mind: will never be easy to find solutions!
The market itself only gives problems, not solutions. And if there are not problems, there is immediately someone ready to create new ones, publishing confused things on the web, and confusing traders: never seen something like “stops are here, orders are there, price is going here, price came here so mean will go there”… who said this? What do they know more than you? Believe me: NOTHING!!
Why aren’t you looking to your charts? Why aren’t you respecting your rules? Why aren’t you looking for a good trade setup? You are wasting your precious time looking what other people do, say, post, think. On and on and on.
You don’t want to give yourself the opportunity to find solutions to your own problems!
As part of a group, you are protecting yourself and the group from external influences!
You have the solutions to all your problems in trading (I would say in your whole life) but you don’t want to accept them.
Are you unable to decide a position? Are you unable to read market? Are you unable to use an automated tool or an indicator? Certainly not!! So, what is your problem?
Decide! There is a market running, there is not time for doubt! Stop moaning!
Why did you open short while was to open a long?
Because you are unconsciously scared. Because something deep inside (i call it 'SUB-UNCONSCIOUS'), is trying to destroy yourself taking the wrong decisions and even if you CONSCIOUSLY know the perfect time (and level) to open the perfect trade, you do it opposite.
Market shows you everything you need to decide the correct, but your conscious is influenced by your unconscious (and sub-unconscious) which are scared and bombed by all those things around you like “ money, money, money - news are false and manipulated - price is manipulated - your broker will find the way to kick you out of your positions – your broker manipulate charts – charts are manipulated - someone knows everything – someone wants your money to become billionaire - you are nothing in markets ..." and blah blah blah. I could write a book only for the summary!
You are driven by scare!
Same as you, other members of your group will keep sending signals to the others to keep group’s equilibrium. If one day you will meet best strategy ever, you will surely find a problem and not use it! Or else, someone will show you some reasons that destroy your confidence in that strategy.
Until will come a day when you will understand this, and begin to take your decisions from an objective point of view, and so be cold and faraway from all those “it is said – it happened that – it could be – it could be not etc…” you will never be profitable in the med-term run and only get some profit trades just to lose them the other day.
You have to react and run away from yourself, and so from your group. You must react and be conscious of everything.
Stop repeating yourself that trading is impossible. Stop looking for something 100% sure: it doesn’t exist!! Start to make YOUR OWN DECISIONS!
Market is cold, market is numbers, market is the most complex-correlated (and BEAUTIFUL) calculation ever! Market is not human and has no sentiments or feelings. Market is market and it has deep-complex rules that you (also me) will never be able to manage, with our small human brain.
WHAT YOU NEED TO DECIDE A TRADE IS INSIDE OF YOU WHEN YOU READ A CHART!
IT IS NOT HERE.
AND WILL NOT BE ANYWHERE ELSE.
Like it or not, this is one of most important things that happen inside us when we approach trading: we try to use all behaviors that helped us in our lives.
Think about this: if when you were a kid you tried to touch fire you got burnt; so, after that day, you never touched again fire. Market is not like this: if you open a long position and get it wrong, it is not that you will never open another long position!
Market is not governed by standard rules.
Below I attached two interesting links if someone wants to go deeper in what I described above.
Wish you best of success in your trading career.
Systems theory – Wikipedia
Defence mechanism – Wikipedia
Psychological projection – Wikipedia