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Michael 1. Parsons

The document discusses how emotions can negatively impact trading decisions. It states that the market is designed to prey on emotions, making traders want to sell when they should buy and vice versa. It argues that understanding how markets work is important to avoid being manipulated by fear and greed into taking losses. The document also notes that the market will find ways to make traders act against their logical interests by triggering emotions like greed during price rises and fear during drops. It stresses that the only way to trade successfully is to control emotions and detach oneself from decisions.

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Nguyễn Phong
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24 views1 page

Michael 1. Parsons

The document discusses how emotions can negatively impact trading decisions. It states that the market is designed to prey on emotions, making traders want to sell when they should buy and vice versa. It argues that understanding how markets work is important to avoid being manipulated by fear and greed into taking losses. The document also notes that the market will find ways to make traders act against their logical interests by triggering emotions like greed during price rises and fear during drops. It stresses that the only way to trade successfully is to control emotions and detach oneself from decisions.

Uploaded by

Nguyễn Phong
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Michael 1.

Parsons

The point here is that whi le Channel Surfing is a technical trading


method, its success is rooted in crowd psychology. It is important that
you understand this concept because the market is designed to play on
one's emotions and does so in extremes. Emotionally you want to sell
when you need to buy and buy when you need to sell. For most,
emotion will overrule logic. Our heart can make even the most foolish
act look like a good idea. Ask anyone who has fallen in love with the
wrong person and they will agree. This is why understanding what
makes channels tick and how markets really operate is so very
important. Otherwise, you we will be caught up in the emotional roller
coaster that will have you manipulated into doing what you would never
want to do, take a loss.
Here lies one of the hardest lessons for traders to learn; despite all that
you learn the market will still find ways to have you doing what it wants
you to do. It is for this reason that some people will never succeed in
trading. When the market starts rocketing higher, it screams at you to
buy as greed takes hold. The temptation becomes unbearable and you can
hardly restrain yourself, but restrain yourself you must because the turn
around is imminent. Or immediately after you have bought price spikes
lower and fear grabs hold of you. Seconds seem to last hours as panic sets
in. The market screams at you to sell and you can hardly contain yourself,
but contain yourself you must because as soon as you exit you do so at a
loss and usual ly just before the market finally moves your way. All the
profit that would have been made has passed you by.
Can you fight and control these emotions? There is absolutely no avoiding
them. You will have to face this battle and only you can conquer them. If
you cannot do so, then nothing in this book or any other will help you to
trade successfully. Fear and greed will warp your senses into
believing you see things that are simply not there. Only by detaching
yourself emotionally from your trading will you be able to trade logically
and perceive what is really happening. A market is a living organism with
a will and personality of its own. Like a wild animal it cannot be trusted.
But it can be managed, at least in regard to specific situations. However,
even in controlled situations you cannot let your guard down, particularly
when you are dealing with a predator that will chew you up and spit you
out. Our greatest vulnerability to this beast is our emotions. Many forms
of spider venom attack the nervous system, rendering a victim helpless
and unable to move. The market's venom also attacks the nervous system,
but instead
ofthe spider.causes erratic and uncontrollable movement. Beware the kiss

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