Lately, I came across a weird and disruptive idea: some scientists that study the human mind have determined that we do not see what “enters” into our eyes, but instead we “project” through our eyes what our brain is expecting to see. Some scientists call this holographic reality and this process can easily explain some difficult-to-be-accepted aspects of our common experience, as we often do not see something unexpected, or, on the opposite, see just the details we already know (in a person, in a picture, in a text or in an event).
No need to say that if you apply this process to the trading and investing activity it is somehow explosive: yes, we all project our knowledge of the markets into our expectations and then we fund on our opinions to trigger decisions. And we all make mistakes, as our decisions are what we want to see in the market, what our minds project on the reality and we think that this is reality. Delusion is just behind the corner.
Is there a solution? Yes, more than one. You must train your mind to be as free as possible and to accept every possible aspect of reality. Accepting does not mean embrace, but recognize. You must study your field of interest and collect any point of view, slowly building your own. Always take note of the opinions you do not share. In the field of trading, you may use some agnostic techniques as technical analysis – that is not foolproof – to reduce some macroscopic errors. And then you can take profit from artificial intelligence tools, that, if well designed, offer an unbiased view of reality through pattern recognition. It frees you from the necessity to always have an opinion on everything (such a burden!) and so your mind is much less solicited, calmer, more open to recognizing reality as it is.