Forex

People have been joining crowds for safety since the beginning of time. If a
group of hunters took on a saber-toothed tiger, most of them were likely to
survive. A lone hunter had a slim chance of coming out alive from such an
encounter. Loners got killed more often and left fewer offspring. Group
members were more likely to survive, and the tendency to join groups
appears to have been bred into humans.
Our society glorifies freedom and free will, but we carry many primitive
impulses beneath the thin veneer of civilization. We want to join groups for
safety and be led by strong leaders. The greater the uncertainty, the stronger
our wish to join and to follow.
No saber-toothed tigers roam the canyons of Wall Street, but you probably
fear for your financial survival. Your fear swells up because you cannot control
changes in prices. The value of your position rises and falls because of
buying and selling by total strangers. This uncertainty makes most traders
look for a leader who will tell them what to do.
You may have rationally decided to go long or short, but the moment you
put on a trade, the crowd starts sucking you in. You need to pay attention to
several signs that indicate when you start turning into a sweaty crowd member
instead of an intelligent trader.
You start losing your independence when you watch prices like a hawk
and feel elated if they go your way or depressed if they go against you. You
are in trouble when you start trusting gurus more than yourself and impulsively
add to losing positions or reverse them. You lose your independence
when you do not follow your own trading plan. When you notice what is
happening, try to come back to your senses; if you cannot regain your composure,
exit your trade.