Thursday, March 10, 2016

Trading Meditation: Perception Is Nothing But Fiction


Fact: Perception is fictional.

You never see full reality, only what your brain wants you to see. Basically, your brain is lying to you every second of every minute of every day.

Are you a contrarian?

Then that opening gap looks like a slam dunk parabolic short.

Do you like to go with the flow?

Then that same breakout is a trend following set up.

Perception is not necessarily a bad thing, if you know how to use it. The problem is most traders don't.

Study your trades and let your research be guided by what perception tells you are your brain's expectations. Only now let facts help you see reality.

If you find that you've shorted most breakouts, your expectation is that of a contrarian.

Use this.

Rigorously analyze the setup until you have all the facts you need to trade it. At this point don't let facts, rather than perception, guide you and systematically formulate a setup.

You have not created rules that remove the brain's filter on reality.





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