Info!! In That Place Is No Novel Doing Without Novel Viewing

One of the most mutual mistakes traders brand is that they desire to create novel things--find fresh opportunities, alter the agency they larn by trades or themselves--while retaining their existing ways of seeing the world.  If nosotros await at the globe through the same lenses, we'll pretty much run into the same things together with reply inward the commons ways.  New doing requires fresh viewing--the mightiness to article of apparel a unlike laid of lenses.

I was pleased to run into that my new book, Trading Psychology 2.0, is locomote available.  I gave the mass that cite to bring an of import theme:  recent inquiry inward psychology has moved us a long agency inward recent years, challenging our traditional ways of thinking well-nigh the psychology of trading.  In other words, recent operate inward psychology provides a novel laid of lenses that allows us to persuasion our trading--and our increase every bit traders--in a fresh light.

Margie together with I of late spent an even together with morning time inward Tusayan, AZ, simply exterior the Grand Canyon.  We visited the Canyon closed to sunset together with hence i time to a greater extent than closed to sunrise (see above).  The calorie-free on the rocks together with canyon was completely unlike at the ii times.  What y'all saw inward the evening--the textures, colors, together with details--was radically altered inward the morning time light.  It was similar viewing ii principal paintings of the same subject.

Notice how the procedure of visiting the Canyon at sunrise together with sunset is real unlike from the tourist's procedure of coming to the site at a random fourth dimension of day, taking a await at the big canyon, snapping a few pictures, together with hence going on for the residual of their trip.  

Most traders approach markets the agency the average tourist visits the Grand Canyon.

What the novel psychology teaches us is ways of seeing markets at sunrise together with sunset--in i light, together with hence a real unlike light.  That is how nosotros larn inward at fresh insights; that is how nosotros run into things that others miss.

One laid of charts that I continue examines toll levels--and rates of changes of those levels--at unlike fourth dimension intervals.  Another laid of charts I continue examines volatility readings--and changes inward those--at unlike fourth dimension intervals.  One laid of toll together with volatility charts is denominated inward toll alter units--each "bar" represents a given total of effort inward the asset, non a fixed fourth dimension period.  Another laid of toll together with volatility charts is denominated inward mass units, where each "bar" is drawn afterward a fixed total of contracts trade.

The opportunities be at the intersection of those iv sets of charts, where toll alter together with volatility patterns work up.  If I persuasion markets every bit a tourist, looking entirely at time-based toll charts, I never run into the intersections.  The tourist who comes to the Canyon at noon never sees the Canyon at sunrise or sunset--and tin post away never appreciate the changes betwixt the two.  The tourist who looks at markets i agency cannot run into the opportunities that confine from a fresh laid of perspectives.

An of import takeaway from Trading Psychology 2.0 is that nosotros can't principal markets acre we're stuck inward our ain 1.0 version of trading psychology.  Only yesteryear viewing ourselves together with markets inward novel ways tin post away nosotros laid ourselves upwards to create novel things.  There is no border inward consensus perception.

Further Reading:  The Most Important Trading Trait
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