{"id":2580,"date":"2009-06-19T11:21:07","date_gmt":"2009-06-19T16:21:07","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2580"},"modified":"2009-06-19T11:21:07","modified_gmt":"2009-06-19T16:21:07","slug":"key-to-trading-success-ignore-natures-laws","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/06\/19\/key-to-trading-success-ignore-natures-laws\/","title":{"rendered":"Key To Trading Success: Ignore Nature’s Laws?"},"content":{"rendered":"

The following is excerpted from \t\t\t\t\tRobert Prechter\u2019s Independent \t\t\t\t\tInvestor eBook<\/a><\/strong>. The 75-page eBook is a compilation of some of \t\t\t\t\tthe New York Times bestselling author\u2019s writings that challenge \t\t\t\t\tconventional financial market assumptions. Visit \t\t\t\t\tElliott Wave International to download the eBook, free<\/a><\/strong><\/span>.<\/p>\n

By Robert Prechter, CMT<\/p>\n

\u2026The natural tendency of people to apply physics to finance \t\t\t\t\texplains why successful traders are so rare and why they are so \t\t\t\t\timmensely rewarded for their skills. There is no such thing as a \t\t\t\t\t\u201cborn trader\u201d because people are born \u2014 or learn \t\t\t\t\tvery early \u2014 to respect the laws of physics. This respect \t\t\t\t\tis so strong that they apply these laws even in inappropriate situations. \t\t\t\t\tMost people who follow the market closely act as if the market is \t\t\t\t\ta physical force aimed at their heads. Buying during rallies and \t\t\t\t\tselling during declines is akin to ducking when a rock is hurtling \t\t\t\t\ttoward you.<\/p>\n

Successful traders learn to do something that almost no one else \t\t\t\t\tcan do. They sell near the emotional extreme of a rally and buy \t\t\t\t\tnear the emotional extreme of a decline. The mental discipline that \t\t\t\t\ta successful trader shows in buying low and selling high is akin \t\t\t\t\tto that of a person who sees a rock thrown at his head and refuses \t\t\t\t\tto duck. He thinks, I\u2019m betting that the rock will veer away \t\t\t\t\tat the last moment, of its own accord. In this endeavor, he must \t\t\t\t\tignore the laws of physics to which his mind naturally defaults. \t\t\t\t\tIn the physical world, this would be insane behavior; in finance, \t\t\t\t\tit makes him rich.<\/p>\n

Unfortunately, sometimes the rock does not veer. It hits the trader \t\t\t\t\tin the head. All he has to rely upon is percentages. He knows from \t\t\t\t\tlong study that most of the time, the rock coming at him will veer \t\t\t\t\taway, but he also must take the consequences when it doesn\u2019t. \t\t\t\t\tThe emotional fortitude required to stand in the way of a hurtling \t\t\t\t\tstone when you might get hurt is immense, and few people possess \t\t\t\t\tit. It is, of course, a great paradox that people who can\u2019t \t\t\t\t\tperform this feat get hurt over and over in financial markets and \t\t\t\t\tendure a serious stoning, sometimes to death. Many great truths \t\t\t\t\tabout life are paradoxical, and so is this one.<\/p>\n

For more information, download Robert Prechter\u2019s free Independent \t\t\t\t\tInvestor eBook<\/a><\/span>. The 75-page resource teaches investors to think \t\t\t\t\tindependently by challenging conventional financial market assumptions.<\/p>\n
Robert Prechter, Chartered Market Technician, is the world’s foremost expert on and proponent of the deflationary scenario. Prechter is the founder and CEO of Elliott Wave International, author of Wall Street best-sellers Conquer the Crash<\/a><\/strong> and Elliott Wave Principle<\/a><\/strong> and editor of The Elliott Wave Theorist<\/a><\/strong> monthly market letter since 1979<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

By Robert Prechter – The natural tendency of people to apply physics to finance explains why successful traders are so rare and why they are so immensely…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-2580","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2580","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=2580"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2580\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2580"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2580"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}