many traders suffer delusions in processing information about a trade

Trading Education Buyer said:
Here is a example of delusions , apply same delusions to a trader

At five foot six and 270 pounds, the bank robber was impossible to miss. On April 19, 1995, he hit two Pittsburgh banks in broad daylight. Security cameras picked up good images of his face — he wore no mask — and showed him holding a gun to the teller. Police made sure the footage was broadcast on the local eleven o’clock news. A tip came in within minutes, and just after midnight, the police were knocking on the suspect’s door in McKeesport. Identified as McArthur Wheeler, he was incredulous. “But I wore the juice,” he said.

Wheeler told police he rubbed lemon juice on his face to make it invisible to security cameras. Detectives concluded he was not delusional, not on drugs — just incredibly mistaken.
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Going forward, I suggest that you refrain from smoking a joint before posting.
 
lindq said:
Going forward, I suggest that you refrain from smoking a joint before posting.
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We have seen this play out for centuries. What starts as wise investing turns into a mania. Examples are too numerous to list, but here are a few:


  • 1700s Tulip Mania: at one point tulips were more valuable than gold
  • 1700s South Sea and Mississippi Company Bubbles: These companies were with more than 80 times all of the gold and silver in France.
  • 1927 Florida Housing Bubble: A 2 bedroom condo in 1926 cost as much as a large luxury home in Miami today (4.5 million *without* adjusting for inflation)
  • 2002 DotCome Crash: Nasdaq lost 78 percent of it's value in 18 months.
  • 2009 Housing Bubble and Credit Crisis: Credit and housing mania leads to 50 percent loss in the market in 18 months.
In all of these instances, what started as smart, logical and prudent investing trends gave way to the insanity of the crowd.

Your job as a trader is to identify when wise crowd logic gives way to delusion.
 
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Trading Education Buyer said:
Here is a example of delusions , apply same delusions to a trader

At five foot six and 270 pounds, the bank robber was impossible to miss. On April 19, 1995, he hit two Pittsburgh banks in broad daylight. Security cameras picked up good images of his face — he wore no mask — and showed him holding a gun to the teller. Police made sure the footage was broadcast on the local eleven o’clock news. A tip came in within minutes, and just after midnight, the police were knocking on the suspect’s door in McKeesport. Identified as McArthur Wheeler, he was incredulous. “But I wore the juice,” he said.

Wheeler told police he rubbed lemon juice on his face to make it invisible to security cameras. Detectives concluded he was not delusional, not on drugs — just incredibly mistaken.
More...
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