Saturday, September 18, 2021

The BATTLE ... is between ??????

We get to hear and read what the financial markets is all about. The risks, the dangers, the rewards and the successes. We also will be exposed to media discussing almost everything trying to link all the relevant and irrelevant subject to the market actions. All this sort of presentations can only do ONE thing ... ie to make a simple subject into a very cloudy and confusing.

The whole truth is there are only 2 "objects" in the whole analysis. The market as it presents itself and US. We can't control market actions BUT we can control our actions. To control our actions mean to control our minds. To control our minds means we need to manage filters what gets into our minds and are kicked out. 

This brings us to the next analysis. Our mental make up which is our BELIEFs become our tools for actions and decisions. This inner BELIEFS can either propel us across boundaries or we become a SLAVE where we become our own mental ransom inhibiting and prohibiting progress.

 Market like any other "nature" is INDEPENDENT. "They" act on their own accord independent of others. The rain will come independently irrespective of our presence and actions. The financial market behaves the same independently ignoring US. 

It is about how to act to adjust to the nature and the financial markets. Our actions is the product of our mental make-up. 

While we look "out" with our eyes, the truth is ALL arrows point back to us. WE CAN ALLOW OUR MIND TO MAKE SELF-KIDNAP RANSOM or WE CAN BREAK THIS.

Looking at the charts in early 1993 is not "SEEING". It is like the HEARING but not LISTENING. After many years I finally get to understand the meaning of "UNDERSTAND" the charts.

Understand the chart is no different someone who is able to SEE a piece of art and appreciate the drawing like masterpiece. There is no AI software in our eyes and brains to guide us. We see a piece of art as it is. It is the same for looking at the price chart.

The only different between the drawing on the wall versus the chart ("alive" and evolving) is the "drawing" is static and no longer evolving. The chart shows us what it has been, what it is NOW and we have to decide what it is MOST likely to be into the future.

It is about DIRECTION - DIRECTION - DIRECTION. How intense of the directional action will depends on the "pitch" or "tangent" or angle of the forward thrust. There is NO need to tie and relate all the irrelevant materials in the FINANCIAL BUSINESS SECTIONS of the news to this. All we simply need to do is to develop or create or use simple tools to track the "pitch" and changes.

All NON-VISUAL descriptions become academic discussions which is my opinions DO NOT contribute and able to track the "tangent".

All that matters is HOW MARKET VOTES UP or DOWN is REALITY. That is action that follows the law of physics. FINANCIAL theory is about HOW MARKET SHOULD VOTE in theory. The actual vote versus the theoretical vote. Sometime market vote in the direction as per theoretical vote. Sometime market vote against the direction of the theoretical vote. In conclusion market is INDEPENDENT and INDIFFERENT what the theory says.

Nobel prize financial theories works for a period of time than blow up! Unfortunately the world is skewed to the "financial theories" instead of seeking the truth in  "Applied Physics" that has stood the test of time.

If financial theories incorporate the non-linear properties into the existing linear financial theory approach, that we have a complete Dynamic and Non-dynamic Financial theory which I call Applied Financial Physics.

Accounting is LINEAR STATIC. Finance is LINEAR STATIC but market is NOT. Market is DYNAMIC that consist of both LINEAR and NON-LINEAR properties. Market is an emotional behavioral dynamic creature. 

The battle is NOT about how "academic" we become but rather how "creative" we get.

 

   


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