I was watching an experiment and it made me think about how we behave in the markets and what kind of profits we generate. Stay with me and see if you can relate.
There were a group of volunteers that were watching an actor. The actor was presented with a first picture and he stayed calm. When they presented him with a picture of rose, he pretended that he was being shocked and he was in pain even though no pain was inflected on him. This process was repeated several times.
I must add that the volunteers did not know that he was an actor. They just knew that they were going to be subjected to the same process.
Do you know what the interesting result was?
Because of what the volunteers saw, they were anticipating pain and all of them reacted as though they were being shocked and in pain when they were presented with the picture of the rose. The truth was that they were not subjected to any pain or shock.
This is what is called observation learning. Therefore, reactions are learned behavior.
What does that have to do with your trading and your profits?
Consider the following:
- Who are your mentors?
- Who do you listen to?
- What are your sources of information?
- Who do you surround yourself with?
- How do they react to the current markets? What are their points of view?
- How are you reacting to the current markets?
You might have heard that you are the average of the 5 people that you spend the most time with. Therefore, pay attention to who you surround yourself with and where you get your information.
Notice how that impacts your trading and your results!
Here is to making trading success your habitâ„¢,
Nazy
P.S. Give me 30 minutes and I’ll show you the number one blind spot that stops you from having the trading business and lifestyle that you desire.