During a visit to the aquarium in Cape Town, we passed by the seahorse exhibit. One interesting fact was that the seahorse's eyes move independently, enabling them to spot food and predators at the same time.
Traders are more limited than seahorses in that respect: they generally perceive danger or opportunity, but not both at the same time.
Many of the techniques of trading psychology, as well as many historical analyses of market patterns, are ways for traders to "switch eyes" and appreciate threat at times of potential reward and opportunity at times of seeming danger.
An excellent habit to develop is to ask where the opportunities might lie during points of apparent risk and where the dangers lie at times of perceived opportunity. If those questions do indeed become habit patterns, traders can truly become more seahorse-like.
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5 comments:
Dr Brett
Glad you survived the new sa! In the old days you could walk around Cape town at night.
You said "One interesting fact was that the seahorse's eyes move independently, enabling them to spot food and predators at the same time". You know the seahorses sound like the criminals who haved turned normal people in SA into their pray...
Glad you are safe. My last visit to sa was like an extended crime report not a holliday!
Regards
David
You must be reading my mind. I was just thinking this morning how I think one of the greatest things to overcome when learning to trade is when to realize a pullback is just that in a uptrend and not a reversal. I think it's the hardest thing to master, because one eye is saying, danger going down, you have to train your other eye to see it's just a pullback.
Dr. Brett,
Your observaton about what we see, ties in with a what I read by a professor of anatomy about when he was trying to find specimens with a paleontologist (book, "your Inner Fish." The paleontologist was finding bags full of specimens, teeth, bones etc on the desert floor, but our author found none. After a lot of experience he finally found ONE. Then sudently he found many. THEN, he went to a different location and found that he had to learn the whole thing over again and the environment and clues were different.
This seams a lot like watching these charts. At first it means nothing and the pat patterns we all learn don't really happen that way. Then after a while we figure out the clues (tells) to see. THEN, the market changes on us and nothing works anymore. Have to do the whole thing over again to find the new clues.
jgr
Clever analogy, but does this mean that male traders will start having pregnancies also? Teehee.
Check out the male seahorse reproduction routine:
http://en.wikipedia.org/wiki/Hippocampus_(genus)
great illustration.. i am still working on the eyes thing..
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