False Assumptions are Killers
There are two things that I hear on occasion that always make me laugh.
Number one – This move up or down has to keep going because of such and such.
Number two – This Market has gone too far, we are at a top or a bottom and it can’t go any further.
When I find myself thinking such things, I do an immediate “check up from the neck up” because I know that I am not thinking in probabilities. Very dangerous indeed!
There are always unknown forces operating in every Market at every moment. We never know who is about to pull the trigger and get in or out of the game.
So if you find yourself thinking thoughts like these. Take a step back and really look at what the chart is telling you. Train your eyes to understand price action and identify key levels of support and resistance on a chart.
And guard your ears because they are the enemy. For every five people in the news that say we are at a top or bottom, there will be five more who say the exact opposite.
So what is a guy or gal to do?
Take trades based off your rules. When things change, you change. Have the mental flexibility to adjust and unwind any trades that are eating into your capital. Constantly take an evaluation of your mental state, especially if you see yourself buying lies (like the ones above).
The act of trading is simple when you have a systematic non-discretionary plan.
So brush up on your chart reading ability and remember that price action discounts everything (even the HYPE we here on TV).
If you are brand new to trading, and are not apart of my membership site, stop what you are doing right now and go sign up. The information has literally changed hundreds of peoples financial lives, and it can absolutely change yours too. If you want to check out some of these stories, just click here.
If you have been trading for a while and are apart of my membership site, leave a comment below and let me know what “lies” you hear floating around out there that get a laugh out of you.
Make it a great day,
Jeffrey Z
www.JeffreyZiegler.com
One Response to “False Assumptions are Killers”
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I get the biggest laugh from these self proclaimed market experts who think they know which way the market is heading. Using Jeff’s coaching I’ve been making 10% to 14% a month in the markets simply by looking at what a chart is telling me, and laughing at all the talking heads out there.