Imagine you are driving your car and you come to a fork in the road. The road sign is missing and you have two options- turn left or turn right.
Or maybe not!
Of course you could always turn right or turn left. You might also consider:
Check your GPS.
Consult with your map.
Turn back and look for another way.
Wait for someone to pass and ask him/her.
Take a blind chance.
Just stop for a minute and think your options all over again.
Although subconsciously people are thinking of two chances, they should challenge the dichotomy thinking processes and don’t close the door of possibilities. Maybe there are more than just two possibilities.
Same goes with trading.
It is very difficult to obtain the full set of possibilities in each and every trading situation, but you should at least try to do better than simply either/or.
Any new idea is a possibility. Each alternative scenario is as good as the most logical outcome.
In many occasions, the alternative scenario is impractical, but from it may be extracted a valuable concept, which can indeed be used.
In my opinion, trading is probably one of the best (if not the best) example of various possibilities, especially for the one with the open mind!
So, there are certainly more than two possibilities.
The questions is, which one will you choose.
This material is written for educational purposes only. By no means do any of its contents recommend, advocate or urge the buying, selling or holding of any financial instrument whatsoever. Trading and Investing involves high levels of risk. The author expresses personal opinions and will not assume any responsibility whatsoever for the actions of the reader. The author may or may not have positions in Financial Instruments discussed in this newsletter. Future results can be dramatically different from the opinions expressed herein. Past performance does not guarantee future results.