Trader"s Born On Dates
Just like Budweiser, traders and investors have born on dates - and you better know yours.
I could spend chapters and chapters writing about the differences between traders.
Even if you gave 2 traders the exact same courses at the exact same time and asked them to read the same books and exposed them to the same financial media, you'd still get two different significantly traders with two distinct trading styles.
Why? Trading is an individual process.
Even when exposed to the exact same inputs over time, each trader will assimilate only that information that they relate to.
Each trader is exposed to and tries to understand a huge amount of information.
But only so much information gets in.
The remainder of the information is simply discarded - or stored in some deep recess of the brain until some new input generates some recognition of relevance and that information may be revisited.
So what you end up with is an almost purely random path from the start of your trading experience to where you are now.
Even when the input is controlled - you'll never be the same as the trader sitting next to you.
That doesn't mean a group of traders can't be exposed to the same trading system, and taught how best to execute it aka the turtles and their commodity trending system - but for the most part, no two traders will be alike left to trade on their own.
There are so many variables that cause differences between two traders - a big one is what I like to call their born-on date.
Their Born-on date is just as it's used with the beer companies, it is what the market conditions were when you first got exposed or involved in trading.
So if you started your trading experience in a bear market, you're more likely to be a bear forever and if you started your trading experience in a bull market, then you're more likely to have a bullish bias.
You'll never lose this underlying bias.
It's ingrained in your brain.
Why? Look at individuals who have lost significant amounts of money in the market.
This might even include yourself.
What caused you to lose this money? Did you put it in the market, just before a significant bear market? (Trust me, this happens to a lot of people) Did you swear off the markets forever? Well, if you didn't and you lived to trade another day, you will more likely approach the markets from a bearish perspective.
Do you find yourself shorting frequently? Even in Bull Markets? Ok, sounds like a simple concept, but the brain is such a complex organ and we know so little about that the paths it takes to make a decision and those paths will just never be mapped out.
There are ways to retrain the brain.
In fact, when I talk to a trader, I can get their blueprint in less than 5 minutes by asking them a series of questions about their experiences.
How do we use this to your advantage? First and foremost, consider your born-on date.
Did you take up trading in the stagnant 80's, the rip roaring 90's or the bearish early 2000's.
Your born on date will determine your underlying bias to your trading.
You ever notice that you trade better in bear markets or bull markets? Second, when you're communicating with other traders, note their born on date.
It's not like you can turn them over and read it on the bottom of their shoes.
So you'll have to do a little digging.
Why is this helpful? Well, we're always getting input from various sources.
Now, knowing the born on date from the source of the information allows you to remove their bias - and get a clearer read on the market or information being presented.
What am I? I'll give you a hint, I'm a BEAR...
So what is YOUR born on date? Give it some thought and let me know...
I could spend chapters and chapters writing about the differences between traders.
Even if you gave 2 traders the exact same courses at the exact same time and asked them to read the same books and exposed them to the same financial media, you'd still get two different significantly traders with two distinct trading styles.
Why? Trading is an individual process.
Even when exposed to the exact same inputs over time, each trader will assimilate only that information that they relate to.
Each trader is exposed to and tries to understand a huge amount of information.
But only so much information gets in.
The remainder of the information is simply discarded - or stored in some deep recess of the brain until some new input generates some recognition of relevance and that information may be revisited.
So what you end up with is an almost purely random path from the start of your trading experience to where you are now.
Even when the input is controlled - you'll never be the same as the trader sitting next to you.
That doesn't mean a group of traders can't be exposed to the same trading system, and taught how best to execute it aka the turtles and their commodity trending system - but for the most part, no two traders will be alike left to trade on their own.
There are so many variables that cause differences between two traders - a big one is what I like to call their born-on date.
Their Born-on date is just as it's used with the beer companies, it is what the market conditions were when you first got exposed or involved in trading.
So if you started your trading experience in a bear market, you're more likely to be a bear forever and if you started your trading experience in a bull market, then you're more likely to have a bullish bias.
You'll never lose this underlying bias.
It's ingrained in your brain.
Why? Look at individuals who have lost significant amounts of money in the market.
This might even include yourself.
What caused you to lose this money? Did you put it in the market, just before a significant bear market? (Trust me, this happens to a lot of people) Did you swear off the markets forever? Well, if you didn't and you lived to trade another day, you will more likely approach the markets from a bearish perspective.
Do you find yourself shorting frequently? Even in Bull Markets? Ok, sounds like a simple concept, but the brain is such a complex organ and we know so little about that the paths it takes to make a decision and those paths will just never be mapped out.
There are ways to retrain the brain.
In fact, when I talk to a trader, I can get their blueprint in less than 5 minutes by asking them a series of questions about their experiences.
How do we use this to your advantage? First and foremost, consider your born-on date.
Did you take up trading in the stagnant 80's, the rip roaring 90's or the bearish early 2000's.
Your born on date will determine your underlying bias to your trading.
You ever notice that you trade better in bear markets or bull markets? Second, when you're communicating with other traders, note their born on date.
It's not like you can turn them over and read it on the bottom of their shoes.
So you'll have to do a little digging.
Why is this helpful? Well, we're always getting input from various sources.
Now, knowing the born on date from the source of the information allows you to remove their bias - and get a clearer read on the market or information being presented.
What am I? I'll give you a hint, I'm a BEAR...
So what is YOUR born on date? Give it some thought and let me know...
Source...