Page 15 - Psychology Course Study Manual

Time ~ Space ~ Reality ~ Oneness ~ Markets

What do the above all have in common? That’s right, “nonlinear” concepts!

It is interesting that one of the great minds of humanity, Albert Einstein spent his time on

“nonlinear” concepts such as “time, space, reality, and oneness.” I find it more interesting that

the interdependence of these “nonlinear” concepts is what makes a market tick as well.

As a trader, “timing” your trade within the “market” is based on “reality” in relation to the

“oneness” of other traders and your outcome is determined by the “space” or movement of

your position.

Most traders incorrectly view the markets from purely a "linear" mindset and instead should

view the markets from a "nonlinear" mindset as the markets are "nonlinear" themselves. This

is why rigid logical thinkers or "linear intellectuals" find trading the markets so
frustrating. Since they operate from their logical "linear" "beta" mind state, and become

frustrated when market behavior does not do what it "should." This is also why successful

trading has to be both “art” & “science.”

Think about how you approach the markets and to what degree you are a “linear” vs. a

“nonlinear” mindset. Also try and remember a trade or trading day where it seemed effortless

and you just “let-go” and flowed with the market. In days like these, I’ll bet logical thinking was

secondary to enjoying yourself, and selecting trades based on both your trading “tools” and
your “intuition” which represents trading the markets as an “art” & “science.” Compare that to

days when you where frustrated because the market did not do what it was supposed to do

based solely on logical assumptions.

Usually fear and greed are by products of logical thinking. Fear and greed are emotions and

“nonlinear” in concept, but created by “linear” thinking. Isn’t it interesting that fear and greed