Most market players fail to realize that their trading reality, what they experience, is largely determined by their interpretation of the market. It is not necessarily determined by what the market does. In other words, it is not the market's reality that determines our results. It is our interpretation of, and our response to, that reality that determines them. While this statement may sound more philosophical than practical, we have found it to be enormously helpful in our
trading. Let's consider the nature of the overall market for a moment. The market, by itself, is nothing but quantum soup. It offers absolutely no guidance, direction, or order. We as astute traders must bring order to it. Order is not the responsibility of the market, it is ours. Put yet another way, the market by itself cannot affect our lives or even determine our results. It is our response to the market that affects them, and our responses are determined by our very own interpretations. This view places full responsibility where it should be, with us. Think about how many times you've been greeted with the question, “How's the market treating you?’’ As if the market were capable of choosing its enemies and its friends! “How are you treating, or responding to, the market” is the real question. We are never victims. Yes, we may lose or experience pain because of an incorrect interpretation or a faulty reading of the market. But that interpretation is always ours, or at least one we've chose to accept.
SEED OF WISDOM
The market is a near perfect mirror of life. This is why that which often makes for a successful life also makes for successful trading. Much of life and what it delivers depends on our
perception. We need only take a quick glimpse at our great country to illustrate this view. A Negative Perception
One person, living in this wonderful land of plenty since birth, experiences nothing but misfortune, disappointment, and failure. As a result of this, all that person sees is darkness, negativity, and a whole host of reasons that confirms the tragic conditions being experienced. Little does that person know that life, a perfect mirror of his or her perceptions, is casting the very reflection that was created and continues to be created. It is no wonder that each step this person makes leads to misfortune.
A Positive Perception
On the flip side of this we can find another individual who has just arrived to this opportunistic land. This individual's circumstances are nearly identical with that of the first individual, yet he or she sees and responds to conditions differently. Because this individual is in America, the great land of opportunity, this foreigner knows his or her plight won't be reality for long. Instead of asking the question, “why is life so angry with me,” he or she asks, “how can I make my life better than it is right now?” Instead of seeing despair, this individual sees possibilities, chances, and opportunity. Instead of dealing with the current state as a victim, he or she takes the position of someone in control, a commander. Life for this person will almost have to start manifesting circumstances that match this view. Why, you ask? Because life is a perfect mirror of our thoughts, our responses, and our beliefs. We have found that the market as a whole acts in the same way.
The Market's Mirror Effect
Previously, we've referred to individuals dealing with the mirror effect of life in general, but the market has this same mirroring effect. Every consistently losing trader sees the market as this angry foe that must be overcome, tricked, or even conquered. In the loser's mind, the market is out to get him or her. It is perceived as an enemy of the highest order, and
the market, being the perfect mirror that it is, casts that very negative perception back, in every detail. In other words, the losing trader's perception of the market becomes reality. The winner, on the other hand, sees the market in an entirely different manner. For the winner, the market is a friend. Its very purpose is to serve and reward him or her. The winner does not see the market as some bloodthirsty demon on a death hunt. Instead, the winner sees it as the place where dreams come true, a place through which his or her life is made better each and every day. To the winner, the market is a friend, a partner, and a sibling who is able and willing to open up the coffers of opportunity, fortune, and prosperity. To some, this may sound too philosophical, but we can't tell you how much our trading has been helped by making sure our perception of it is healthy and friendly. Just like life itself, trading is all about perception. Have the right one, and you win. Have the wrong one, and you will lose with great pain. You eventually get exactly what you perceive to be true. Why not decide to see the market as your friend and align yourself with it? Why not join forces with it?
As a final note I will say this. We have a student who after 2 years of training has risen to that grand level of development called trading mastery. It is not odd for that student to earn $60,000 to $100,000 in a week. That's right, 1 week. Do you think this immensely talented trader sees the market as an enemy or a friend? Case closed.