DECISIONS - BELIEFS - EXECUTION - TRUTH/REALITY

The whole equation in the financial markets actually can be distilled into a few variables that are inter-linked.

It starts with YOU(ME) with a PLATFORM (Mobile/PC) for orders execution.

One step back is the decision making process which can be via a few routes independently or inter-connected economic financial analysis, chart analysis, news media report or unverified news (rumors).

Two steps back will be psychology (mental) make up or composition inside YOU(ME) mainly from experience, perception and BELIEFS.

For us to make a final decision to pull the trigger to buy or sell, I will and tends to say that it is about either we put a price tag valuation to the CURRENT price.

If we do not have an opinion what the price tag is NOW, than it is very unlikely that we will decide to act accordingly.

If we Believe the current price is "HIGH or EXPENSIVE" using our analysis be it special or proprietary, than we are going to place SELL order. 

If we think that the current price is "LOW or CHEAP" than we will place the BUY order.

No matter how complicated or simple our analytical process is, the final conclusion is that WE WILL MAKE A CHOICE to SELL or BUY.

We will focus on the PROCESS.

Our perception or belief that certain price action direction will or is going or might happen in the near future will decide either HOW WE REACT NOW or LATER.

From the moment of placing the order(s) until exit and clearing all the positions, the next scheme of things happening is the mental and emotional evolution from FEAR to CONFIDENCE or vice-versa. This will cause us to either add-on more or reduce positions.

This is the NORMAL evolution in the whole "cycle" within US and markets. The emotional and psychological developments.

I did not want to dwell into the ANALYTICAL methodology as I feel is a small portion of the total equation and others can disagree with me.

But I am sure what I have said is the COMMON traits that cut across all people active in the markets IRRESPECTIVE what methodology used.

It is better for us to identify which part or link is the weakest that need to be improved first before we debate on the analysis