The universe is a mysterious place indeed. Mind you, I am an avid follower of physics, specifically quantum physics, and, more specifically, of the physics that deals with “the field.” Now, I don’t want to go all “sciency” and abstract on you, so I won’t take us down the road but a little bit.
One current hypothesis in physics is that all things, including all perceptions we have as conscious beings, derive from a place called “the field.” The field is the origin of all subatomic energy; it is the place from which all thought originates and to which it returns. The basic idea is that everything we perceive is, and always has been, contained in the field. All we do is draw from the field, much like drawing water from a well. Thus, the hypothesis states, because we draw from the infinite source of all thought for all of our perception, we can control our own reality. Since one of the fundamental principles of physics is that all systems seek equilibrium, one can see how this might work — a certain amount of negative energy will, eventually, balance the same amount of positive energy. Too much of one or the other in any system tilts the system toward the outcome connected to the more abundant of the two energies. So, the argument goes, if one wants a positive outcome, one needs more positive energy, and vice-versa. This brief and non-specific overview brings us to the question below.
In many trading psychology books it says we should remain in a state of expecting any outcome in the market to avoid negative energy, but how should one do this if they are using technical analysis to determine moves in the market/indexes?
All I can tell you is that if you believe the hypothesis of the field, then you must believe that you determine the outcome based on your perception of the outcome. So, if you perceive the trade will have a positive outcome, and all things in the hypothetical system are in balance as you perceive, then your perceived outcome can only be the more abundant of the two energies, which is the positive energy. This assumes, however, the energies are in balance. If they are not in balance when your thought is pulled from the field, the more abundant energy will influence the outcome. In other words, expecting any outcome tilts the energy balance, so if you have no expectation of the outcome, you eliminate the influence of both the positive and negative energy. Thus, in the end, whether it is technical analysis, fundamental analysis, or simply wishful thinking, the outcome depends on the balance of energies that exist in “your system” at the time you first pull the thought from the field. In other words, it is what is is.
Phew! That was a mighty handful of thinking, to be sure, and I am not even sure that I expressed the essential elements accurately, but one thing I do know is that the idea of positive and negative energy seeking balance in any system is the underlying key to the ”psychology” books that espouse the thought you presented. The notion is not new. In fact, as child, I remember everyone talking about a book titled, The Power of Positive Thinking (Norman Vincent Peale).
The way I see it, though, is much simpler to digest. If you have no expectation of any outcome in any endeavor, then the outcome you get will neither surprise nor disappoint you. In trading, this is the best mindset one can have, as it is key to controlling your emotions in a world where emotion can cause you to make bad decisions.
Trade in the day; invest in your life …
