Technical Analysis Course – How Losers Think Part I

Today we will have a closer look at how losers think in this technical analysis course series.

Tagore – the famous poet: —- wrote, “Pessimism is a form of mental dipsomania. It disdains healthy nourishment and indulges in the strong drink of denunciation and creates an artificial rejection which thirsts for a stronger drought”.

The losers are like the lemmings that race to the sea. They are caught in the trap of self-denunciation, artificial rejection and they can’t wait to get more of it! Bombardment by negatives, by parents and relatives to children and the continuation of this through life is as if there is a conspiracy to develop and sustain a “can’t do” thinking-attitude in individuals. Conditioning continues through song lyrics, television commercials, pressures from friends, relatives, neighbors, social contacts and nearly all of society. A newspaper cannot be sold, a news hour cannot be made interesting unless it reeks with unpleasantness and miseries,…. that which the loser is made of.

The losers of the world love misery it is the only thing that makes him happy. Think of it!

The losing trader is a self-defeatist. He functions best when he is under stress and strain, and is at home when he is losing money. The loser who strikes gold in the market, literally falls apart.. he is not used to it. He does not know how to enjoy success. His thoughts have always been built on struggling and losing. He wins, – he goes berserk – he becomes an expert – he develops what one prominent futures trader (Larry Williams) called “the King Kong feeling”. He loses self-control, and boom – his profits are gone, and he’s back to the misery and struggling again, that which he is used to, – like lemmings to the sea, and he may not wish to admit it but he loves to struggle,- to struggle to win. But his mind cannot cope with the winning itself. It copes with the struggle. Amazing, isn’t it? Especially when you examine it through a technical analysis course.

He correlates a posture of immaturity. No wonder he is made a fool of by the amicable political candidate who assures the loser with “Look, don’t worry about your life. We’ll take care of it for you. We know better than you what is good for you”.

The loser just has an overwhelming desire to win. They persuade themselves they can win, and keep coming back determined to save face. The degree of ineffectualness is already programmed into his/her psychological patterns. With success he becomes almost hypnotized by the events which then shower upon him. He enters a trans state. – mind hypnotism. He gets sinking feelings about this and that. He cannot wait to apply what he did right, usually to the same market again, but at the wrong time. His mind is almost saying to him, “It really isn’t happening to you”. He doesn’t really know where he is. He becomes another person.

[ It is always a happy event to see a loser win, but it’s sad because you can recognize the trance state they are in, and you know that given time they will lose again -so much, that they will be right back where they started.]

Sometimes when a profit does accrue, the loser’s mind will be so happy with the profit, that it will grab it, but nearly always prematurely. If a loss is occurring to the account, his mind says “It will all work out in the end” and he/she hangs on. He always cuts his profits short, and lets his losses run.

The budding trader finds it hard to short the market. He thinks that the sky is the limit and that there is no ceiling on prices. As long as he buys against base zero, growth is inevitable, since to his mind, that is what life is all about, – growth, upward movement.

{We will continue this discussion about how losers think in our next article in this technical analysis course series.}

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