Friday, October 6, 2023

Perception - The biggest obstacle to anything in life!!!!

If there is one biggest thing I learn and believe in life, it is the POWER PERCEPTION aka BELIEF.

Everything being equal, perception will ultimate decide if that person is going to succeed in anything he or she does.

Swimming in the market for more than 30 years, I come across all sorts views from ignorant people who do not have an in-depth knowledge of any particular subject easily comments - Forex is the dangerous? Commodity is dangerous? Stock market is dangerous?   

Anything we do without proper and correct knowledge is DANGEROUS! IF you understand well or very well in what you do, NOTHING is dangerous as long we know how to manage unexpected events.

Is swimming dangerous? Yes it is if one does not know how to float. Even if you are qualified swimming instructor or Olympic gold medalist, it is dangerous to swim in a fast flowing river during flood. Mostly these expert can be drowned. However experience individual need not be a gold medalist or certified instructor who knows when is a safe time to step into the water will survive.

When one understand the market cycle and it's modus operandi, than this "game" become interesting, fun and easy.  

In fact if one can think "outside" the box, the opportunities are unlimited. 

Safety -This covers areas like how to go with the flow and protect your ride from sudden turbulence.

Opportunities - This include the different combination of products like Intra-Calendar spread, Inter-Commodities spread and Options

Rules - All game has RULES. Once you are able to identify and list the permissible rules, automatically the rest become NON-GRATA rules. 

Anyone who stand against the trend will and can never make it out alive. But anyone who can ride on the trend like cowboy on the horse will go long distance.

We will encounter "Black Swan" event. But with proper safety insurance orders in place, we will be protected against such unexpected dangerous event. Overall, the markets have the trends for each product and they are not moving uniformly at the same time.

It is possible some products moving in synch with others BUT never at the same intensity or velocity.

It is also possible that some products move in opposite within the same sector.

Welcome to the world market where Human Behavior manifest itself in price trends despite many believes that the economic fundamental rules.

This pot of human behavior pours out in the market arena where many dreams are shattered and many visions are fulfilled.

As the saying goes ... 

YOU CAN COUNT THE APPLE ON THE TREES BUT YOU CANT COUNT THE SEEDS IN THE APPLE.          

It has proven over last 30+ years with my experience, good "fundamentals" need not translate into rising trend and disregard of trend cycle can only result in premature demise.

As I tell my friends, I do not doubt your story or the source, but I will stick with the trend cycle. IF the trend cycle contradicts the story, I will ignore the story and stick with the trend.

FIGHTING THE TIDE IS NOT ONLY SILLY BUT ALSO STUPID. 

NO ONE EVER SURVIVE FIGHTING THE TIDE WITHOUT HEAVY INJURIES. 

MOST LIKELY HEAVY CASUALTIES.

Market is the only place that humbles you if you stand firm on your view or opinions when they contradicts market direction.

It i wiser to eat the humble pie and make money than to be egoistic and pay with your bank accounts  


          

 

No comments: