Gorillas and The Market

Allgreen ~ reversal, supp 1.56 , res 1.75






Federal ~ rangebound, supp .645 , res .72 (as requested)







JEL ~ retracement complete, supp .325







SinoTech ~ breakout confirmed, supp 1.30






Straitsasia ~ support confirmed, .70

A problem that has perplexed zookeepers for many years is why gorillas don't mate incaptivity. It is not because they don't learn about sexual activity; it is because they don't have the proper environment. All animals must have risk to make life worthwhile. If there is no risk, we try to create some because risk and feeling alive are different sides of the same coin. Risk is what makes us alive. Life is not worth living in an environment where there is no risk. In the past, depressions, wars, and conflict gave us a national purpose. We could risk everything for the common good. World War II brought Americans together and created a level of cooperation among us that has not been matched. Our risk was in seeing our enemies, looking them in the eye, and doing something about them. Then the atomic bomb made hand-to-hand combat obsolete. We no longer looked our enemies in the eye, and war became more scientific and less personal.

Even before World War II, most people had the risk of surviving during the Great Depression. Just getting by brought out the best in us. Because we spent most of our time surviving, we were relatively happy while dealing with this risk. Then modernization machinery and the postwar industrial revolution allowed us more leisure time than we were accustomed to having. Today we have to spend that leisure time, and we have lost the opportunity to struggle. Most people fill the gap with TV, but you and I have the opportunity to fill this deep need by being in the market. First, we must understand our need and how the market interfaces with that need. Chaos provides us with unique tools. Chaos is the background from which we mine the material needed to make us feel good about ourselves, to learn about ourselves, and to progress toward realizing our own personal potential. We are forced to make choices, to abide by the results, and to learn from daily opportunities. Risk is a turn-on in life. We are not interested in haphazard risk. We are talking about the risk that produces research, allowing us to understand the markets better and to extract profits from our knowledge and understanding.

Your beliefs about the market create your reality of the market. Beliefs are assumptions about the nature of reality, and because you create what you believe in, you will have many "proofs"that the market operates the way you think it does. For instance, a trader who believes that the market is abundant and generous will act in such a way that he or she experiences abundance; a person who believes that no one can make money from the markets will not receive money from the market. Each trader will have many experiences to prove that his or her personal belief about the market is really a fact about the market. You can change what you believe and thus change your experiences in trading. In this book, we are going to explore in detail how to trade each of the five dimensions. We will then put them all together for a profitable approach to decision making in the markets.

The biggest risk you can ever take is not betting on yourself.

We have explored in this chapter the reason most traders lose, and we have introduced the idea that the new Science of Chaos can improve our market performance, allowing us to be consistent winners in the markets and in life. We also took a quick look at what I refer to as the real Holy Grail. In the next chapter, we will examine the Science of Chaos from a practical everyday trading orientation. We will eliminate most of the complicated math and concentrate on profitable application of the theory. A number of books contain the mathematical underpinning of the Science of Chaos and Complexity, but few have successfully applied the theory to the investing and trading markets. I am proud to have you join me in this pioneering effort. The best is yet to come. Let me again welcome you to the wonderful world of trading and investing, where anything is possible if you understand what is happening in both the market and yourself Permit me to share with you other reasons I love trading the markets. It is the last bastion of free enterprise where you are rewarded generously for doing the easy, appropriate thing.

You win or lose purely on your own decisions. If at the end of today, I have lost, THERE IS NO ONE TO BLAME. If, on the other hand, I win today, I DON'T HAVE TO SAY THANK YOU TO ANYONE. I am not obligated to anyone or anything. I do not have to be politically correct. The reward is there for the taking; the only question is: Are you conscious enough to take it? My wife once wrote an article describing the market experience as "sliding down the razor blade of life." One young man whom we taught to trade successfully wrote, "It is the most fun I have ever had . . . with my clothes on." Your scan be a life of freedom and fun; the responsibility for that freedom lies solely within you. And now, let's take a closer look at Chaos, which you will find to be another word for FREEDOM.

(Excerpt from New Trading Dimension: How to Profit from Chaos.)