DrBob
I compliment you on your TA article, "Psychological and Sentiment Factors for the Markets". Your implementation that paraphrases the psychological/emotional effects on the soul of investors was perceptive and what I consider to be superb in stating the factors beyond our normal insight. Thank you.
A few thoughts of mine.
I realize that while it is necessary to have a primary goal, in order to proceed with the task that has been set, it should remain flexible and adjusted accordingly when outlying circumstances come into play. I have found that by setting “mini goals” along the way it helps me to stay focused and rethink the route that needs to be taken in order to reach the final goal that was initially targeted. Often a long-term goal is obscured with greater obstacles that challenges our efforts and this can have us questioning our reasons for thinking we could reach it in the first place. Or are they questioned as often as they should be?
I agree that it is certainly human nature to revert to 'Cognitive Dissonance' in order to protect the beliefs that are held, but when we convincingly keep alive what we deem to be the right reasons, we are doing more damage to our initial strategy that will prevent the achievement of our goal. I certainly don't want to find myself climbing a ladder that has a limited number of rungs and no escape to safer ground.
Also, at times we will start to formulize a new galactic goal prior to obtaining that which we began with and it creates a cycle that, although well intentioned in the first place, could lead eventually to failure. Thought you might be interested in a theory, that can be adapted here, where “The Diderot Effect” refers to the never-ending cycle that is associated with the need to constantly upgrade surroundings (wealth) as a result of that first, fateful event (investment).
Is this the time to be asking, during these questionable market situations, if there's a point when one needs to take a back seat and allow the market to fall or rise, knowing that one will either miss the losses or gains while not participating? Then again we could ask this question several times a year. When is satisfaction finally realized? Where does the ladder end and the snake begin? I guess that can only be answered by the individual depending on their cognitive interpretations.
"…the gap between hope and reality is full of fiction"
Dr. Stephen S. Batory, Professor, Marketing Department, Bloomsburg University, Bloomsburg PA.
Not being negative, but rather offering up my view that was stimulated after reading your observations. I won't stop investing, but will make adjustments when necessary and I'll certainly remain open to learning whatever will assist me along the way.
Thank you again for your TA, another important tool in addition to DD, they're very much appreciated.
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