This discussion was something that striking me a few years agone when I was starting to rake inwards those profits from the market.
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I convey ever made it clear to everyone that I am a theatre believer inwards Technicals in addition to Technicals only. Not to speculation, brokers or Insiders. And most peculiarly non to Fundamentals. I convey embraced this truth in addition to volition most probable conk alongside it.
I am non maxim that believing inwards Fundamentals or marketplace insiders is incorrect in addition to that at that spot is no coin inwards it, because at that spot is. What I am maxim is that out of the iii Truths I experienced, [Fundamentals, Technicals in addition to Funnymentals] entirely Technicals has proven to live on consistent inwards making me coin inwards EVERY flavour - live on it a bull, sideways, or a dreaded comport market.
(Exhibit A)
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"Cognitive Dissonance"
This mightiness live on confusing for those who are novel to it. So to further expound on this lovely term, I'd similar to innovate Bob. (He's a chip shy)
Bob has been studying in addition to trading the markets for a few years now. He believes that stocks alongside expert fundamentals, when timed alongside technicals, volition yield him a fortune inwards a relatively brusk amount of fourth dimension vs if he entirely believed inwards 1 truth.
"Why non teach the best out of both worlds, ya know what I'm sayin?"
So inwards August of 2015, Bob bought TEL on the grounds that it was fundamentally audio in addition to that techincally, it was at expert levels in addition to belongings supports.
On the side past times side calendar month however, TEL broke downwardly from it's supports in addition to striking Bob's technical cutting points at -5% to -8%. He was faced alongside a dilemma. It's a expert stock in addition to it pays expert dividends. In a key perspective if the toll goes whatever lower, Bob volition greatly practice goodness from it because he would live on able to purchase to a greater extent than shares in addition to that would interpret to to a greater extent than dividends. But on the technical side of things, he had to sell because TEL was already showing signs of a downtrend.
There was dissonance. Influenza A virus subtype H5N1 chaos in addition to disharmony boiled within Bob. Does he concord or does he cut?
So he starts thinking close the fourth dimension he spent researching close the company. He computes the revenue enhancement in addition to the newspaper losses he'll incur if he sells. And subsequently eating his favorite happy meal, he came to a decision.
"I'll concord in addition to average down. Someday, this volition teach dorsum up. It is subsequently all, a fundamentally expert stock. Ya know what I'm sayin?"
In lodge for Bob to alleviate his anxiety in addition to uncovering peace within himself, he had to select to firmly believe inwards 1 truth in addition to inwards this case, it was Fundamentals. A yr passed past times in addition to he flora himself alongside deeper losses. But that doesn't comport upon him anymore.
You only cannot serve 2 contradicting truths.
If you're silent novel inwards the markets, at that spot volition come upwards a indicate inwards your trades where yous volition convey to create upwards one's hear only similar Bob.
"Will I select Fundamentals? Or volition I select Technicals?"
Remember, there is no middle ground. And forthwith that I intend close it, this truth reflects a lot close life in addition to the decisions nosotros make.
"Am I silent serving God or am I serving my ain interests?"
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