The danger of projection

As investors and traders we often find ourselves out of sync with the reality of the market.

Market conditions can change and if we do not observe what the market is currently telling us, we will end up giving money to the market.

The financial market is just a place where people transact with each and we do not see or know who is behind the screens. Millions of investors and traders alike.

And as a human being we are emotional beings and the market is more emotional than rational. It often infects us with its highs and lows.

Those who do not have plans often find themselves projecting their dreams, and hopes of more money or a better future.

Sadly in reality the market doesn't care about our emotions, hopes or dreams.

Many fail to accept reality when the tide of the market turns and most of us end up still holding onto those positions by coping with some justification or imagination.

Still projecting their dreams, hopes.

The market can be likened to an ever changing battlefield

The one who knows where he stands and the shifts in his environment knows what strategy to employ. He will most likely come out victorious.

The one who does not know where he stands and the shifts of the environment will likely perish.

Without strategy we will be defeated.

Fighting a battle without a withdrawal plan is suicidal.

In war, emotional decisions are costly and deadly. The same goes for being in the markets.

Hence you must know yourself before you know your enemy.

Thank you for your time reading this post.