|
|
|
|
|
|
|
that most were short-term bearish. This is why most of the public tends to buy the dips as a market declines in a bear market. Each wave of selling is viewed as another buying opportunity, and by the time the realization that something more than a correction is going on, it's too late. |
|
|
|
|
|
|
|
|
Neal: But isn't the secret to making money managing information? |
|
|
|
|
|
|
|
|
Doug: I talk to traders every day and am always amazed at the difference in results using the same information. I have traders using the system who have made money during the recent poor trading market and others who lost money during trades that yielded doubles and triples. I have traders who have suggested that I use them as a contrary indicator. I've always contended that if we use good money management and consistent adherence to a quality system, the results should be the same for everyone. The reality couldn't be further from the truth. I firmly believe that we get what we focus on the most. The problem is that most of us spend our time focusing on what we don't want. Let's say we don't want to lose money. By focusing on ways of not losing money, in reality, we get just that. The subconscious tends to be very literal and will give you exactly what it thinks you want. In this case, by focusing on losing money your subconscious believes that's what you want and causes you to lose money. Another good example is the system we use. What if we choose to focus on the 30% losing trades and ignore the 70% winning trades. Do you think anyone would be successful? Of course not. We must always focus on winning the war, and not the battle. |
|
|
|
|
|
|
|
|
Neal: Well, you sound like a market guru. |
|
|
|
|
|
|
|
|
Doug: In October of 1987, I was certain that the market was in for a 500- to 600-point down day. I was so certain that I had told everyone I knew, and my entire family. I was so certain that |
|
|
|
|
|