Term
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Definition
| People are motivated to trade to make money, the action, euphoria, desire to be a hero, attention one can draw to himself by winning, or self pit that comes from losing. The main reason is unlimited freedom of creative expression |
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| The no boundary freedom of expression creates fin and psych prob. Must create mental structure but there is a backlog of mental resistance by social structures. Nothing in society prepares us to function in this boundary-less environment. |
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Definition
| Social structures consist of rules, restrictions, boundaries and a set of beliefs that are code of behavior that limits ways we can express ourselves. These were established before we were born into. |
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| Things about which we feel a natural or passionate interest in. |
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Term
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Definition
An inner force that's compelling you to experience an object that creates a vacuum in your mind that has to be filled with the object of interest. When your denied expressions, this natural interest is called a 'denied impulse'.
Our needs and desires are generated in our mental environment and fulfilled in exterior environment. If they are in correspondence we are happy and opposite emotional pain. Spinoza - nature abhors a vacuum. We fill the vacuum with experience in ext environment. |
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Term
Trading offers gift and curse
Gift - complete control of everything we do for first time in our lives
Curse - no external rules or boundaries to guide our behavior |
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Definition
When our natural impulses aren't reconciled then addictive and compulsive behavior patterns develop.
unreconciled, denied impulses affect our ability to stay focused and take a disciplined consistent approach to trading. |
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Term
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Definition
| The mental structure has to exist within us because unlike society the markets don't provide it. The markets only provide structure in the form of behavior patterns that indicate a buy or sell signal. |
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| The market does not start, stop or wait. You must predefine your risk in a limitless place. Consistent losers do not accept the reality that no matter how good a trade looks it could lose. |
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Definition
Gambling has a formal ending because your an active loser or winner (wager, game begins, lose, game ends).
Trading has no formal ending because you are a passive winner or loser (losing w/ no action taken) |
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PROBLEM: UNWILLINGNESS TO CREATE RULES
Social upbringing, our choices made by other people, instilled but did not originate in our minds. The very reason we are attracted to trading in the first place - the unlimted freedom of creative expression - is the same reason we feel resistance to creating rules. You can proceed in spite of denied impulses however. |
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Definition
PROBLEM: FAILURE TO TAKE RESPONSIBILITY
The outcome of each pattern is random, the outcome of a series of patterns is consistent. |
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| Those who take stock tips from friends, services, and brokers do not want to take responsbility |
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Definition
| W/o a plan, we take credit for the trades that turn out to our liking because there was 'some' method present. |
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| Another way to not take resp is to blame trades that didn't turn out the way we wanted. (because theres always some variable we didnt know about and therefor couldnt take into consideration beforehand.) |
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Definition
| When we act on our ideas and enter a trade based on our own rules we get instant feedback, this way you can't rationalize away unsat results. |
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PROBLEM: ADDICTION TO RANDOM REWARDS
Eurphoria-inducing chemicals are released in our brains when we experience an unexpected, pleasant, surprise. If a reward is random, we never know for sure if and when we might receive t, so expending energy and mental and monetary resources in the hope of exp that wonderful feeling of surprise. The powerlessness will make us feed the beast or our addiction. |
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Definition
PROBLEM: EXTERNAL VERSUS INTERNAL CONTROL
Our own social upbrining has programmed us to acquire strategies for fulfilling our internal needs by manipulating and controlling our external environment. None of this works on the market because it is a psychological wilderness. The market does not know about, care, or respond to anything important to us. |
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Term
| THE LURE AND DANGERS OF TRADING |
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