Part 4...
Vega also wrote, “Only the shrewd observer who makes it his business to watch these things conscientiously, without blind passion and irritating stubborness, will hit upon the right thing innumerable times, though not always.” I can’t believe how statements from the 1600’s still can apply today with such a degree of validity.
When the speculator himself learns to control his emotions and see things clearly, he begins to understand that trading eurekas and market tricks are just apart of the game. Every man has the ability to control his emotions both through a submission of his ego, knowing he is not always right, and the ability and desire to pull back as many curtains as he can. There is always someone ready to lead us down a road of ruin, and it is a successful speculators end stage to continue down his own path. It is his necessity to create the path of reality from what he questions, sees and ultimately accepts as truth. Through this acceptance of his version of truth comes responsibility both in his trading actions and his decisions. When emotional control is coupled with the acceptance of responsibility, the chances of a farmer to become a successful speculator is much greater than that of the farmer that continues holding hands with the message board screamer as they go down the not so yellow brick road. (Wizard of Oz reference).
Let me give a quote from Keynes that I think beautifies the idea of speculative progression. He says that the outcome of the future market value is a “mass psychology of a large number of ignorant individuals.” If you can progress out of this early stage of speculation where everything is a mystery and begin to push yourself towards the reality of price and volume, reading market psychology and taking responsibility and emotional control in your trading, then you have a huge portion of the learning curve already smoothed.
It is a wonderful mindset to be in as you prepare for each market day, with no irrelevant expectations or predictions based on patterns of illusion. You simply respond to what is seen with control and responsibility through the language of price and volume in whatever visual is comfortable to you. (TA, Tape reading, etc.)
Just my opinion:)
All the best,
Chris
Some research information taken from "Devil Takes the Hindmost" by Edward Chancellor |
