Traders International – Remove Your Distorted Reality

 Powered by Max Banner Ads 

Sometimes I think I would have loved to have found a mentor early in my trading career, it would have saved me a lot of trouble and frustration when I needed it most! Yet, much like the majority of traders I ended up learning the hard way, losing, and losing again, blowing my trading account many times only to eventually do the right thing, that is go to a mentor! After learning so much from the trading mentors I look back at my early trading, and sometimes I feel embarrassed by the stupidity of the early, childish trading of mine.

Bad trading is a natural phenomenon, it’s very similar to other forms of irrational behaviour that we often do. We are not rational beings, and that is why TV commercials work after all, that is why many fake things in life work, such as services that sell false information, horoscope providers and all sorts of gurus who will take you for a ride.

In fact it has been found that consumers buy purely on psychological grounds, they buy things they do not need just to satisfy their consumer psychology. Then they try to justify with reason! Believe it or not, most of the products and services you are being offered are carefully designed to satisfy your consumer psychology and make you desire them. They have little or nothing to do with real logic. It’s the same with financial products and self claimed market gurus who also want to get you excited and take you for a ride in some kink of wonderland, where big effortless profits are possible.

Here are some facts that prove how stupid we consumers are, and how naïve we are when it comes to the real profitability of the financial markets:

1. We think that opportunity exists in some kind of hot stock, that will shoot 400% higher along with the rest of the market – Wrong! We are just ignorant fools, most of the time the markets go nowhere, 80% of the time in fact. But if no money can be made what are all these people doing on the trading floor? Could it be that we could profit even from minor daily moves?

1. We think that once we lost big, much like the dot-com crash losers, there’s no way to earn the losses back – Wrong! It’s similar to statement 1 above, 80% of the time that losing stock or stocks will trade within a tight range for years. A good, educated day trader can recover all the losses of the dot-com disaster within less than 2 years, we are talking about using $10,000 to recover $150,000!

1. We believe that we have a realistic chance to win the lottery (1 in 14 million) sometime in our life, but the chance of developing a rare form of cancer (also 1 in 14 million) somehow appears to be much smaller – WOW! It seems to me that we are hallucinating and we do live in wonderland sometimes, and yet that’s how we manage our money!

Traders International are a trading education firm that will help you remove this and other similar forms of hallucination and distorted reality, they can teach you how to trade from a real world perspective, and where to look for overlooked trading opportunities in the markets. Take the opportunity to learn about the real thing now!

This entry was posted on March 27, 2010 at March 27, 2010 and is filed under Trading Education. You can follow any responses to this entry through the RSS 2.0 feed.