SUMMARY
All humans are attracted to the "sure thing". However, all humans have an underlining sense of insecurity or fear of being wrong and so unconciously cling to another's direction that exudes confidence. And, when that direction or projection becomes wrong, the the resulting guilt and blame is then re-directed to that followed person. If you've never experienced this, then you're either in deep denial or not Human. We Homo Sapiens have an unconcious propensity to project our guilt outward and it could be at anyone or anything as long as it's not self. Projection of guilt or hurt or a sense of loss as well as being wrong allows an individual to not be the responsible one and thus discretely escape accountability. We do this daily and probably are unaware. Outward blaming provides temporary relief, but when nothing is learned and future re-occurrences are assured. In such states, how can one become a good and profitable trader? Imposible.
Good traders or investors know that whenever things go wrong, they are always there to see it happen and quickly take accountability. More importantly, they forgive themselves for the mistake or error or miscalculation. There are no extended periods of regrets or flash back dwellings because the self forgiveness is complete only after taking accountability and so this way, one best learns from mistakes. It becomes a discipline born of habit. And this type of discipline is also the best protection against herding which often brings trading accounts to zero. The needed to Self forgive is not a virtue, it's a discipline of practice and so must come through repetitious application. Overall, discipline allows one to be fearful when others are greedy and greedy when others are fearful.
Herding mentality is extremely dangerous to a trader and so be on the alert. The group think mentality is often very difficult to self detect. Technical Analysts habitually make market calls only after scanning the analysis of colleagues and invariably, this leads to group think and subsequent contamination in price projection accuracy. The end result is what seemed original no longer is and what seemed good isn't anymore. This can be called the "GIGO" syndrome or the Garbage IN, Garbage OUT.
It would be unsuprising to see a good trader actively try to avoid viewing or subscribing to another's analysis. Not out of arrogance but because being only human, eliminating herd mentality becomes a paramount condition. A good trader quits relying on others but rather, relies only on self generated analysis because, when it comes to Technical Analysis, self reliance is mandatory, so going solo is a must.
So, what makes a good trader? A bad trader who forgives himself for his mistakes and resolves to try again!
Please consider reviewing these Tutorials on:
Elliott Wave Counting Tutorial #1
Elliott Wave Counting Tutorial #2
Elliott Wave Counting Tutorial #3
Laddering and Buy/Sell Setups.
Laddering Example with EOS
Tutorial on the use of Fibonacci & Elliott Waves
These Technical Analysis Books: Elliott Wave Priniciple & Technical Analysis of Stock Trends are highly recommended
@haejin's Trading Nuggets
Essay: Is Technical Analysis a Quantum Event?
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