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I am just beginning to go through all the wonderful posts on Psychology.
And I must say as far as I can tell no one has digressed to personal
attacks. Hey I'm impressed.
There has been this thread about beliefs, thinking and perceptions and
what constitutes reality. Not to delve to deeply into this I will give
an example and let you abstract out the analogy to the market.
How each one of handles pressure effects our reality. So you can create
(effect) your own reality based upon the type of pressure you can handle
verses how much pressure your opponent dishes out and can handle. The
opponent might be a teacher, a spouse, a golf buddy, or even the market.
For example, your teacher hands out a ton of homework. You are under a
great deal of pressure to get it finished. You finish the work and the
pressure is now on the teacher to grade the home work. Let's say this
process continues over time. If the teacher can't keep up the teacher
reduces the work load for the students. If you can't keep up, your
grades suffer. But you can create (or effect) your own reality in the
classroom by being able to judge the teachers ability to handle their
pressure.
In some sense this is also true in the market. At what point does the
market take profits after a run up in price. That is a pressure, called
selling pressure. Same holds true for buying pressure. How we handle the
pressure we put on ourselves by our trading systems, effects how we
handle the pressure that the market places on us. As well as the
pressure the market can handle in and of itself.
I hope you can take the rest of the idea and run with it yourself.
Harley
JER3CUBE@xxxxxxx wrote:
> In a message dated 1/31/98 9:26:03 AM Eastern Standard Time,
> JER3CUBE@xxxxxxx
> writes:
>
> <<
> In the MARKETPLACE the only REALITY is ....PRICE !
> >>
>
> The trick to trading is to "act on what you SEE" and not on what
> you "THINK"...(belief system = think) ...you see.
>
> You could be "fearful" of crossing a street if you "think" you might
> get
> run over by a cement truck....is not the same thing as actually
> SEEING a cement truck headed your way.
>
> Both of the above will keep you from crossing the street. Re-examining
>
> our beliefs is a helpful exercise to not being "ruled" by them.
>
> BE HAPPY : )
>
> Gerryb/jer33:3
> eccl 1:9
>
>
> -------------------------------------------------------------------------------------------------------------
>
> Subject: Fwd: Trading Psychology
> Date: Sat, 31 Jan 1998 09:24:42 EST
> From: JER3CUBE@xxxxxxx
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
>
> In a message dated 1/30/98 11:34:24 AM Eastern Standard Time,
> nwinski@xxxxxxxxxxxxxxx writes:
>
> <<
> In the market, PERCEPTION IS REALITY.
> >>
>
> In the MARKETPLACE the only REALITY is ....PRICE !!
>
> What you do or don't do with it is up to you.
>
> GerryB/jer33:3
> eccl 1:9
>
> --------------------
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> Fri, 30 Jan 1998 11:32:42 -0500 (EST)
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> Date: Fri, 30 Jan 1998 11:31:17 -0800
> Reply-To: nwinski@xxxxxxxxxxxxxxx
> Sender: owner-realtraders@xxxxxxxxxxxxxx
> From: nwinski <nwinski@xxxxxxxxxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: Re: Trading Psychology
> References: <199801301552.CAA22285@xxxxxxxxxxxxxx>
> X-To: ramon@xxxxxxxxx
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> ramon barros wrote:
> >
> > Hi Gerry
> >
> > ----------
> > > From: JER3CUBE@xxxxxxx
> > > To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> > > Subject: Re: Trading Psychology
> > > Date: Saturday, January 31, 1998 2:34 AM
> > >
> > > In a message dated 1/30/98 1:15:56 AM Eastern Standard Time,
> > ramon@xxxxxxxxx
> > > writes:
> > >
> >
> > >
> > > If you BELIEVE something...it is true, ipso facto...just because
> that is
> > what
> > > you "believe".
> >
> > Now we'll be getting into an issue that has been around since Plato
> and
> > Aristotle i.e. the nature of reality.
> >
> > Placing it within this context, the issue can be summarized as
> follows:
> >
> > Does my belief create my own reality? In other words is there
> objective
> > reality?
> >
> > I believe there is - but my perception of it may be distorted
> because of
> > my psychological filters. As a rational human being, and trader, my
> job is
> > to perceive reality as accurately as possible.
> >
> > Thus when I say "I believe" it is a shorthand way of saying "based
> on my
> > experience and knowledge, my perception of reality is...."
> >
> > > Note: when talking about "beliefs" you are no longer talking about
>
> > psychology.
> >
> > We'll have to disagree on that. For me, belief systems are a
> critical
> > component
> > of psychology.
> >
> > > The question then becomes.....Is "the belief" valid? Where does
> it come
> > > from? Does it serve me well to be ruled by "fear and greed"?
> >
> > In asking the above, are you not asking the same thing I am but in a
>
> > different
> > form? e.g. is a "valid belief" one that accords with reality? etc
> >
> > regards
> >
> ray,
> In the market, PERCEPTION IS REALITY.
>
> Perceptively,
>
> Norman
> >
> > R Barros
> > 101/25 Market Street
> > Sydney NSW 2000
> > Australia
> >
> > e-mail: ramon@xxxxxxxxx
> > tel: 61 2 92673470
> > fax: 61 2 92673478
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