“Three men are in a car driving down a city street early one morning. The car pulls up at a stoplight, and crossing the street in front of the car is a beautiful young lady who catches the attention of all three men. Her beauty is particularly apparent because she is wearing no clothes.

The man on the right becomes engrossed in thoughts of how nice it would be to be with this lady under other circumstances. His mind races through past memories and future fantasies of sensual pleasures.

The man sitting in the middle is seeing an example of modern decadence. He’s not sure that he should be looking closely at the girl. First miniskirts, he thinks, then topless dancers, and now they’re out on the streets in broad daylight! Something must be done to stop all this! He thinks that he should begin by straightening out the playboy on his right.

The driver is seeing the same girl that the others are observing, but is simply watching what is before his eyes. Since his ego is uninvolved, he sees neither good nor bad, and as a result, a detail comes to his attention which was not noticed by either of his companions: the girl’s eyes are shut. He realizes that the lady is sleepwalking, and his response is immediate and uncalculating. He stops the car, steps out and puts his coat over the woman’s shoulders. He gently wakes her and explains to her that she must have been sleepwalking and offers to take her home.” Gallwey, pp. 41-42

Guess who gets the girl?

This story is an example of how most traders understand price action and opportunities in the market:

1) The egocentric/greedy trader (man on the right) who gets excited about an opportunity in the market based on his analysis/EAs, and past profits-then he begins to fantasize about the opportunity he sees and potential profits.

2) Then there is the fearful/less confident trader (man in the middle), consistently overanalyzing what is wrong with him or his trading system and the opportunity he sees in the market. So, he becomes incredulous about potential profit in the market. Therefore, he consistently loses opportunities to make money in the market.

3) Finally, free from emotion and preconceived notion, the confident/egoless trader (the driver) simply looks at the market for what it is and enjoys doing what is sensible and freely places trade (regardless of outcome).

Frank ThermitusFRANK THERMITUS
Sales Person

fthermitus@tradeviewforex.com