Traders often make fun of how preconceptions and so-called 'common wisdom' influence on their expectations. The market is in constant motion and the formation of excessively strong opinions, especially when it is simplified can lead to bias, which is hard to shake. That is why some traders are strongly warned against the formation of strong opinions. Not harmful and often questioning the so-called 'common wisdom ', which is true only if it satisfies a specific set of conditions. Flexible traders tend to start each day with a clean slate, so that they can 'track and respond' to the market better than those who mistakenly allow preconceived ideas about the market to distort their perceptions. It is vitally important to remain open-minded, flexible and willing to adapt to what makes a market in a given day. Here is an example of how preconceptions and blind adherence to common wisdom, may cause to miss what is happening at the moment. Common wisdom is that the strength of the U.S.
dollar affects the stock price. But this correlation is far from comprehensive. It is important remember that, although an interaction, it is not always strong. Over the past six months or so the U.S. dollar was relatively weak, but weak dollar is not particularly affected the stock price. Even in the most explicit intraday days weakness of the dollar, stocks are not too varied in response to fluctuations in the dollar. Hence, for the past six months, the so-called common wisdom did not help.
Flexible trader, knowing the common belief, can nevertheless see that in the current market hypothesis is not justified. Flexible, adaptive traders. They both consider what 'should happen' according to common wisdom, along with what is actually happening. Inert traders on the contrary, limited its unwavering commitment to preconceived notions. They do not have the openness of perception, they are looking for confirmation of the rules. Instead of skillfully operate under current market conditions, they wait confirmation rules. In this case, they are waiting for is actually going to happen is a strong correlation between the strength of the dollar and stock prices (which seems to have recently occurred). When that time finally comes, they will probably say: 'I did said '. Well … General wisdom is sometimes justified, otherwise it would not be it. This means that if you wait long enough, prejudice will receive a confirmation. But at what cost? Expecting this, you can skip a lot of good trade opportunities. Instead of allowing preconceptions to take over a top, it's better to look at the current market situation and take decisive action. In the short trading 'is significant when significant ', so that commitment to the rules of thumb can be misleading. It is vitally important to be adaptive. Every day we must ask questions: 'What's in the market? " Maybe you need to open trade only in the long side. Maybe you need to sell dauntik on the mini, when Bonds did tick up. Maybe you need to buy power on the mid cap stocks with large short interest, as they well go up, even though the decline the major indexes. Being adaptive, you can simply choose what seems to be working every day and has a much better chance of success. So start each day with an open reception. And if you form an opinion, know how to temporarily set aside, not allowing it to resist your ability to be objective, and adaptive to the market today is telling you.
These signals that make, which, as I say, I’ve been able to capture, I can perceive, that we are in the presence of a being, however, possess potentially, say in the cultivation of your personal aspirations still lacking plane, runs the serious risk of becoming something somewhat unpleasant, a little futile, superficial and vain, person to whom it is best to avoid. Then, to your question, somewhat disparagingly, who is this that is thought? When you go to other people, who perhaps do not fully share your particular points of view, would be that you were previously able to make value judgements about your own person, and you respond with sincerity, who think that I am? As I have mentioned before, the value that each one can give himself, it is directly linked to the degree of development reached, in its ability to recognize the countless actions, which, every day, are made by people in our environment, without any claim, with the sole purpose of collaborating, for which our own life, much more enjoyable, than it certainly would, if they were not there to make things actually happen. Actions such as: give you affection, provide you and serve you food that you eat, wrap that blanket you, resources which demands to meet your needs, etc. etc. A huge list of goods and services which daily consume, which demands are you to provide, for the simple reason, that you consider yourself with the right to sue them, unless you’re with the elementary obligation to thank and if possible, give back. If you look carefully your environment, you will see, although there is a very wise saying which says, there is no worst blind one who doesn’t want to see that there is hardly anything of which demands every day, that they should come from your own effort, in reality is you’re so dependent on others, as a disabled person could beyour for you, you do not bring any value, you do not add anything, you only file, do you think you you deserve what daily? are you receiving? Do you think that the simple fact that are your family obliges those who coexist with you to give and give, without receiving any kind of recognition for what they do? People who really love you, there, are always willing to extend you your hands, but you must understand, that these people have a great value in themselves, they have learned that miracles, no se piden nor are they claimed, simply occur.