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CERTAINTY AND THE ANIMAL SURVIVAL NEED, FLIGHT AND ALL THAT
People look for at least some, if not a lot of certainty in their lives to avoid extreme stress. Hence most people hate change. A management issue! What's more managers never really know,
hence learning to live with uncertainty regarding what your people are doing is important, to give them the freedom to do their best.
The article below explains certainty from a trading markets perspective, and the fact that it is there. Happy reading.
Seeking the holy grail of trading: Certainty Balancing the basic need for certainty coupled
with an uncertain trading landscape, we must find an anchor or reference point from which to begin AARON LYNCH Posted online: Sunday, March 18, 2007 at 0122 hours IST
One of the most basic human emotions dictating at least one decision each day is our confidence in a known
outcome. This can be as simple as knowing that the sun will come up tomorrow or that the train you take to work will arrive on time (in many of our cities, of course, this is a forlorn hope!).
Without this basic premise, however, our lives would descend into chaos, as we could not make a reliable or
informed decision because we would continually be second-guessing all choices confronting us. So how does this affect trading? A colleague of mine disturbs traders by making the statement that "if
the markets were certain then there would be no markets." This can shake the confidence of some. If every market reacted in the same way every time then, at the simplistic level, that market would
be either very easy to trade or, taking a more complex view, that market would break down as it could not exist in this way and any certainty would vanish.
Balancing the basic need for certainty coupled with an uncertain trading landscape, we must find an
anchor or reference point from which to begin. For me, and for all successful traders, that anchor is our chosen trading plan.
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