Your Trading Analysis Course on How Losers Think Part 2 Here we'll continue looking at losers and how they think with our trading analysis course series. His mind has a predilection to going only long in the market . 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 doesn't think about value movements, but in terms of value . 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 . Usually the opposite will prove true . Our natural reaction to news is invariably wrong . A loser is attracted mentally to society's negative news output. When there is ebullient excitement he has a knee jerk reaction . He will slip into the market with the news rather than against it . He cannot stop himself from becoming more and more fascinated with bullish and bearish events that are publicized . His mind just does not "cotton" to dull markets . He always busy on emotion on up days . The herd instinct makes him buy on the first reaction in a topping formation , simply because of the "cheap" price - 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 his mind gets entrapped and chained in inertia of its own. The loser hasn't found out how they should think by using a trading analysis course. The mind of a loser doesn't think . It should, but doesn't . Emotion entraps it . The mind's processes become overwhelmed by unawareness, fear, insecurity, and greed. at least 85% of people really don't think. 13% of the leftover 15% think that they think, but only 2% really think. Got that ? 2% of the total world population actually think ! 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 2% of thinkers, 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. They become "pros" especially when they have a recent but short lived success and they think they will continue to be successful with their "holy grail". 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 he gets shaken to his roots . Without thinking , Mr. 13% ends up back with the other 85% that don't think. He thinks that everything around him is conspired against him . He takes the experience and feels it instead of thinking about it. Fear, fear of the future, uncertainties, worries, insecurities ,
get rid of rational thinking and he without thinking exposes himself, - to biting the bullet, taking risks, and jumping into the market again, since he thinks that a stance that is aggressive , (Mr. Macho) that struggling will bring profit , with which he can start all over again . ( This is a guy who doesn't want to take bad news home to his wife . He is gripped by emotions during this event, 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 trading analysis course series we'll look at the winner's way of thinking . Charles Drummond is a Canadian trader who has written nine books about trading and has created a trading analysis course called “Drummond Geometry." His biography and further information about his work can be found at the trading analysis course website.