How Losers Think - Technical Analysis Course Part I - By: Charles Drummond

Today we will have a closer look at how losers think in this technical analysis course series.

A famous poet named Tagore had the following to say, "Pessimism is a form of mental dysomania. It distains healthy nourishment and indulges in the strong drink of denunciation and creates an artificial rejection which thirsts for a stronger draught".

Losers are just like the lemmings, racing towards the ocean. They are caught in the trap of self-denunciation, artificial rejection and they want more ! Negative bombardments by relatives and parents to kids is as if there is a conspiracy to develop and sustain in individuals an attitude or way of thinking that is "can't do". Through television, songs, social groups, family, and friends, this conditioning continues on. A newspaper cannot be sold , a news hour cannot be made interesting unless it contains unpleasant thoughts and misery .... which is what a loser is made up of anyway.

Losers out there love misery - it actually brings them happiness. Imagine that!

A self defeatist is what the losing trader is. Stress and strain help him function best , and he feels right at home when he loses money. When a loser strikes gold in the market, he falls apart ... that isn't what he is used to . Success is something he doesn't know how to enjoy . His thoughts have been build upon struggling and loss. He wins, - he goes berserk - he becomes an expert - then develops what a well know futures trader (Larry Williams) called "the King Kong feeling". He loses self-control, and boom - his profits are gone , and he goes back to the struggling and the misery - something he's used to, - like lemmings going to sea , and he may not wish to admit it but he loves to struggle,- to struggle to win . His mind cannot cope with the winning itself . His mind can cop with struggle. Amazing, isn't it ? Especially if you take a look at it through a technical analysis course.

He correlates a posture of immaturity . No wonder he is made a fool of by the amicable political candidate who assures the loser with "There's no need to worry about your life. We can take care of it. We actually know what is good for you better than you do".

A loser has a desire to win that is overwhelming . They convince themselves that winning is possible , and they come back again and again to try and save face. Programmed into their psychological patterns is the degree of ineffectualness. When success occurs, those events about hypnotize him . He enters a trance state. - mind hypnotism . Sinking feelings about various things occur to him. He cannot wait to apply what he did right , usually to the very same market but at a time that is all wrong. His mind is almost saying to him, "It really isn't happening to you" . He has no idea where he's at . He turns into someone else .

[ Seeing a loser win is a great event , but it becomes sad when you see them in a trance state, and you know that they'll lose again within time - enough that they'll be back to where they started again .]

There are times when a profit accrues, the loser's mind will be so happy with the profit , that prematurely they will reach out and grab it. If there is a loss occurring, his mind tells him it will work out and they continue to hang on. He allows losses to run and cuts short the profits .

Shorting the market is difficult for a budding trader. He thinks that the sky is the limit and that there is no ceiling on prices . If he buys against base zero, he will definitely grow, since to his mind that is what life is all about, - growth, upward movement .

We'll continue to look at losers and how they think in the next part of this technical analysis course series.

About the Author

Charles Drummond is a Canadian trader who has written nine books about trading and has created a technical analysis course called “Drummond Geometry." His biography and further information about his work can be found at the technical analysis course website.

Article Directory Source: http://www.articlerich.com/profile/Charles-Drummond/70394

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