Commentary 3

Learning the fundamental and technical aspects of the market is a matter of applying oneself and acquiring the language of the market. Consider a trip to China. You'll need to learn the language.

The technicals can be learned and mastered in a reasonable amount of time.

"The hardest thing to learn is control of our nature.
The desire to have more must be disciplined by knowing when the cup is full.

The easy part is the knowing when to act .

The hardest part is to act on this knowledge"
NeboXian

....The Single emotion in human nature hardest to ignore and easiest to manage is Fear.

The fear of failure.

The fear of pain.

The fear of rejection.

The fear of loss....

To take the idea of wandering through life, trying to avoid everything we are afraid of, seems impossible...


The opposite side of the same emotion is desire...the desire to have that which we love, want or need.

These two Emotional drives have started wars and conquered nations. Desire and fear have caused people to steal, argue and fight with those whom the possibility of a favorable outcome would , by others, be perceived as astronomical ...

While there are many tangents and manifestations of these basic emotional states , fear and desire , let's keep it simple for now. They are in fact rather generic terms.

There is also a third behavior. The act of staying to long...holding on and not letting go...choice ...free will....to do or not to do....we'll just call it Greed.

The word "greed" has a negative bias which denotes irrational behavior while the word "passion" portrays a more positive motive and may be a good substitute. At this point ,we are going to learn to manage our fear ,so the word greed works better.

While the degree of Fear and desire provide the emotional momentum to propel us to to a certain behavior, it's greed which produces the inertia to hold us in our position.

Most times our Desires lead us into a potentially dangerous situation which looks safe in the beginning or we wouldn't have entered in the first place.....we are creatures of resistance and support....once our desires overcome our natural resistance, we will enter the new position and use that point of reference as a sense of support... now we are comfortable and as with any dangerous activity it all boils down to your planning. When things start to become unstable , it is very important to have a predetermined safety plan. The decision is made in advance to execute the plan when the environment reaches the preplanned limits.

When you recognise the warning signs and ignore the plan, you are making a choice which is biased by the desire to be right . We begin to experience greed. Now greed will override rational thinking and the only thing which makes us snap out of "it" is FEAR... Suddenly, you realise things are turning very bad. Panic setts in, and more bad choices are made . The safety plan is no longer relevant because the situation is beyond the possibility of a favorable outcome. The technical name for this is Risk Management.

It's all about the things we either don't know or chose to ignore which get traders in trouble. Many traders will argue this point and try to rationalise all this as a Gut Feeling. Until a trader has had some long term experience, he cannot afford to have Gut Feelings. As a rule, if a trader is having "gut feelings " is because he feels something . The odds are, it's either fear or greed... and by then it's to late. .Good planning and staying with the plan will keep the trader out of these emotional account killers...

The Goal of Market Trader Tao is to Guide those ,who want to become more
successful, along a path to understand how to Manage the emotional response
toward the volatility and uncertainty of the trade.

This is not a religious or spiritual blog site but we cannot help but recognise we are spiritual beings having a human experience.

We are all HARDWIRED to believe there is more to the things we cannot see than what we can see. The methods I use are both esoteric and functional.

How is The Market trader Tao used?

The Market Trader Tao lessons are exercises in thought.

Most lessons are only a dozen lines and take a few minutes to read ,but for
some , a life time to learn.

A page of the Market Trader Tao is a tool to invoke reflection and focus.

The more you consider it and apply your personal experience to the passages , the closer you come to see yourself at your level of life. This is a way to train and gain a trust of your subconscious thought.
Have you looked into a holographic picture? The longer you look the more of the picture takes shape. Some of the best ones have images within the images. I'll at times invest 2 or 3 days thinking about a single page. I take notes ..and give my mind time to sort and compile ...and then write down and consolidate my impressions.

Our minds don't work well when asked to think in general terms ....the mind is more like a guided missile...the more specific the target the better...this the purpose of the Market Trader Tao....It's a mind tool to help pull your thought into a focus....the trader will discover these constant truths locked up in their life are reaffirmed through the study of Market Trader Tao....you will also find, most lessons will translate to all life experiences.


The first constant Market Trader Tao (way)


The Market exists to make Money...........for somebody.
The trader has the desire to make money .... for himself.


Therefore , the market exists for the trader to make money.



The Second constant Market Trader Tao

The Market will continue to preform the same as it always has.
The Market Trader fears the potential of loss.

Therefore, the trader can manage fear of market performance .



The Third Constant Market Trader Tao

The Market momentum will determine the trend direction.
The Trader is motivated by the the greater of desire or fear.

Therefore, the trader dose nothing when the trend direction cannot be seen.


The Fourth Constant Market Trader Tao

The Market will Always Reverse Direction.
The trader will always lose money.

Therefore, the trader always determines the limits of loss before the reversal arrives.

A final thought :

When faced with a choice of getting out a little to early or waiting to long to get out.
Ask yourself this Question.....which will make you feel worse at the end of the day?


Missing out on making more ?
or
Wishing you hadn't lost so much?

NeboXian