This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
Tyro wrote an excellent post debunking The Law of Attraction. I won’t rehash it here. I didn’t watch the Secret — I would rather skim through Victoria’s Secret. From what I’ve read, it states that everything in our lives is wholly determined by our thoughts. As Tyro eloquently states, “the market doesn’t give two monkey shits about our belief.”
Over the weekend I was watching the military channel. They were doing a special on a military pilot (I don’t remember his name) who was in a POW camp in Vietnam. Because of his strong mental fortitude, he not only kept himself going, but everyone around him. There are numerous accounts of people who endured the hardship of the holocaust, kidnappings, or other forms of torture. Through those difficult times, they tapped into a place mentally that is not accessible to most people. Because of that ability, they survived.
In Tampa this past week, a child was kidnapped. He escaped in a McGyver like fashion. After being tied up in an orange grove, he managed to escape. Some people are just tougher mentally than others.
Our mental preparation (and health) is a key ingredient to our success in most endeavors in life. Not only do we have to be tough enough to make it through the difficult times, we must be intelligent enough to either devise (or copy) a plan to succeed. I think that most traders are independent. Born in a different time, today’s trader, may have braved the harsh seas to discover America (let me not get into that! — sarcasm alert). If they didn’t mind getting their hands dirty, they may have participated in the gold rush. It’s this type of independent spirit, accompanied with a desire to be obscenely rich, that drives most of us to do battle with the markets. Actually, our battle is really with other participants.
This brings me to the point of this post. All of the positive thinking in the world didn’t stop today’s carnage. I didn’t see many that truly capitalized on today’s action (including myself). It is the perverseness of the markets that negates The Law of Attraction as it relates to trading. When there are too many bulls, the market will eventually selloff. When there are too many bears, it rallies. Most traders understand that. On a side note, I saw that many traders reveled in the carnage — even if they didn’t reap it in their P & L.
As I have worked through some of the mental obstacles plaguing me, I have reaped the benefit in my trading. To be successful in the markets, you need the tools. After learning TA, or some other way to attack the markets, you may be faced with an inability to follow your plan. That is not the Law of Attraction. Positive thinking alone will not lead to your success. However, there may be other road blocks that need to be worked through. I recommend Mark Douglas’, The Disciplined Trader.
The markets may not give two monkey shits about our belief, but our ability to follow our trading plan, hinges on our belief system.
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com