A big misperception that causes many a value conflict for retail traders is their concept of objectivity in short term trading, hence they seek refuge in technical analysis.
The big issue 99% of traders simply do not understand is this:
Fundamentals are not “objective”, because they are based on a false perception of reality and the same is true of technical analysis which is simply collecting data from the past.
If a data stream is based on an illusion of truth, rather than on “eternal truth!, at some point the entire structure collapses.
I know this is hard to grasp, but what you are being told as relevant to your decision making processes regarding a company, or a futures contract really is nothing more than a belief that is held by a majority of people. If enough people hold a belief it becomes strong enough in the morphegenic field to create a 3 D reality upon which the majority of people base their decisions. They do this because they believe that in understanding the “fundamentals” they now have an objective base upon which to make trading decisions.
However, what they are looking at is just the level of support a belief is getting. It is not “truth”, or “reality”, or objectivity.
Reality and objectivity in this sense simply do not exist.
Anyone reading this who knows about the Heisenberg principle will know what I am talking about.
If you measure the value of a company by its P/E ratio and trade it off some moving average and volume indicators you may think you are choosing objective parameters when actually all you are doing is making a decision on what the majority of traders and investors believe in at the moment the trade goes on.
Do not confuse these parameters with truth, or being objective, because it is simply perception based on your individual psychology.
Perceptions of the majority of people can change in a moment. This fact has led to many trading profits and losses ever since the markets came into being.
What is hardly ever fully realised is that you are basing your perception on an evaluation of the past.
In a universe where the energies are speeding up, perceptional shifts are also speeding up. We might observe this in increased volatility, or extended ranges with low volume.
Only a very small minority of traders are aware of how their perceptions on the markets are based on superficial information which has nothing or at best very little to do with truth or “objectivity”.
It is hard to accept that we live in a universe where objectivity ultimately does not exist.
Scientists know about this. The observer principle plays out in science all the time, hence scientists have devised a safety mechanism whereby scientists are not allowed to look at the results of an ongoing experiment. The only flaw in this precaution is the fact that consciousness is non local…
You may consider all the above as irrelevant, non-objective piffle. That’s fine. It is hard to grasp what so called “reality” is really all about. Yet, we live in two worlds: One which the majority of people see and believe in, and one that is seen only be a minute number of people who are the real players…
Do your own research and above all educate yourself about “reality”.
