Forex

Basically, all of our observations (assessments) go through a part of the brain
(the reticular activating system, or RAS), which acts as an analyzer and gives us only the
information that passes our filters (what we want to hear). In no way does it give us a true take
on reality or on what is really out there. A camera does not have an RAS to filter its incoming
information. It just records what is present in a certain vibratory octave. It will take a picture
of a yellow vehicle with black writing on it, and that is what you get. We, however, identify
the yellow vehicle as a school bus and immediately all of our prejudices and preconceived
notions jump to the forefront rather than seeing what is actually there. We think about slowing
down, not passing, and watching carefully for small children. Our actions are not based on
grounded assessments but on our history (belief system) with that particular concept. It is said
that generals always fight the previous war rather than the one they are in. We traders
generally trade our last mistake rather than what is happening in the current market. In other
words, we set up our own prejudices based on past experiences, and any incoming
information will be filtered to make sure that it does not contradict our belief systems. If
reality does conflict with our belief systems, we will deny reality and distort incoming
information to keep our unquestioned beliefs intact. No wonder we perform so miserably in
the market even though we may have been extremely successful in other professions or
businesses. In the market, you either confront reality or you create losses. If we want to climb
off this ladder to distress, we must confront what is really going on in the market rather than
our ideas about it