Is There An Investing State Of Mind? As Hurricane Sandy

New Post Public Reply Private Reply Replies (0) Message Board

Dec 2, 2012 at 8:05 AM

Is There An Investing State Of Mind? As Hurricane Sandy wreaked havoc along the east coast of America, the U.S. stock market experienced its first weather-related closure in 27 years. The decision, which was made in unison by the New York Stock Exchange (NYSE) and other leading players within the industry, was intended to protect individual investors from the threat of plummeting trading volumes. In addition to this, an enforced break from the market may also allow traders to gain greater perspective on their individual trading strategies, as they seek wealth and fortune within the most volatile of financial environments. More specifically, it affords them the opportunity to consider the role of psychology in trading success, and ponder whether there is a specific state of mind required for investors. Forex Broker Guide: Using the right broker is essential when competing in today's forex marketplace. Investment and Chaos Theory: The Importance of Having a Trading Philosophy The influence of psychology in financial trading is a much-discussed topic, with Bill William's unique Chaos Theory one of the first to make a connection between the development of an investment philosophy and market success. He argued that the cultivation of a trading philosophy was far more important than the use of technical indicators and analytical tools, especially when it came to earning long-term returns in an increasingly unpredictable economy. Chaos Theory suggests that there are two main aspects of any investment philosophy, each of which is crucial to a trader's overall performance. The first aspect relates to knowledge of the financial markets, including how they operate. The second aspect refers to an individual trader's own level of self-awareness and inner confidence. These two mental factors combine to create a strong investment mindset, as the ability to make bold decisions is largely dependent on a core knowledge base and in-depth understanding of a specific financial structure or environment. The Link between Chinese Philosophy and Financial Gains Although the theory is not without its critics, its fundamental principles share a great deal in common with some the world's most long-standing philosophies. Take the ancient Chinese practice of Zen, for example, which despite having its origins rooted firmly in the seventh century, retains considerable relevance in the modern age. Most importantly, part of its wisdom dictates that inner belief and having the courage of your convictions is crucial to the attainment of goals, and this certainly echoes the sentiment of Bill Williams' Chaos Theory. Separate to the philosophy of Zen is the I Ching (Chinese Book of Changes), which offers far greater insight into individual leadership and the art of decision making. In particular, it discusses the need for conviction in decision-making and how an individual's strength of mindset remains the one constant amid changing external conditions and an evolving environment. This has undeniable relevance within the financial markets, as while particularly volatile platforms, such as the foreign exchange, are subject to constant price movements, successful traders are able to rely on their own knowledge, self-assurance and perception in order to succeed. The Taoist development is another Chinese philosophy that supports the need for an investment mindset, especially in the second phase of its teachings. Within this literature, it is recognized that, "although things in this world are ever changeable and changing, the laws that govern this change are not," and this wisdom reflects one of the defining features of the financial market place. Although the nature of each economic and financial crisis may change, for example, the subsequent reaction of the market remains largely unaltered, which in turn provides an opportunity for traders who are inwardly confident and knowledgeable to profit from bold investment moves. SEE: Create Your Own Trading Strategies The Bottom Line With concerns growing about the impending fiscal cliff and a worsening eurozone crisis, the current economic climate is certainly posing a potentially debilitating threat to financial traders and investors. While this threat is tangible, however, experienced investors will point to the fact that the financial markets are consistently vulnerable to change and potentially influential global events. This week provides a case in point for U.S. investors, with the October jobs report and election scheduled within a short space of time. However, the majority of seasoned investors will still often find a way to protect their interests and acquire profit in a volatile market. This is primarily because they have cultivated a well-defined trading philosophy over time; this mindset distinguishes them from investors who are driven by emotion or simply new to the workings of the financial markets.

Newer

Older

Scroll down for more posts ▼

Top 10 Most Recent News Articles

Standex's New Financial Lead: Stoddard Takes Helm

New Financial Captain Aboard Standex's Ship Alright, here's something that'll have investors nodding along with interest: Standex International has just named Samantha L. Stoddard as their incoming Chief Financial Officer and Treasurer, effective December 1, 2026. Now, Standex isn't some scrappy upstart. We're talking about a veteran manufacturer intricately working...

DOCS Faces Investor Legal Battle for Alleged Misconduct

The DOCS Predicament: Investors Facing Class Action Doximity, Inc., trading as NYSE:DOCS, finds itself in hot water again as shareholders gear up for a legal skirmish over alleged securities fraud. Schall, Brown & Schwartz LLP, the firm rallying the shareholders, has fired the opening salvo, pointing fingers at Doximity for cooking the books about their Newsfeed’s...

Costa Rican Firms Chase Growth at SIAL Paris 2026

Chasing Growth in Paris: Costa Rica's Bold Move When it comes to playing the global field, Costa Rica isn't just sitting back; they're on the move. Picture this: PROCOMER, along with 18 standout companies, landed smack dab in the grand hustle and bustle of SIAL Paris 2026. This isn't some leisurely stroll—it's a calculated sprint toward expanding their reach across...

Encompass Health: Leader in Rehabilitation Again in 2026

Pinnacle of Rehab: Encompass Health's Notable Streak You know, in a world where healthcare accolades fly around like confetti, Encompass Health Corp's persistence in being named America's Most Awarded Leader in Inpatient Rehabilitation by Newsweek for the seventh straight year is something to chew on. The fact that a record 78 of its hospitals dotted across 32 states...

LINC Lawsuit: Boardroom Stumbles Spark Investor Action

Class Action Kickoff: Lincoln's Educational Curveball No one fancies home runs when the ball’s out of sight, and that’s probably how some investors in Lincoln Educational Services Corporation (NASDAQ: LINC) are feeling right now. A group of shareholders has pulled back the curtain on what they believe are more than just administrative hiccups—allegations of...

F.N.B. Q3 2026 Earnings: Solid Growth Continues

F.N.B. Stays the Course with Strong Q3 2026 Ever heard the phrase “slow and steady wins the race?” That seems to be the mantra over at F.N.B. Corporation (NYSE: FNB) as they roll out their Q3 2026 earnings. Now, they aren't breaking any land speed records, but what they are doing is consistently stepping up their game, quarter by quarter, like clockwork. Drilling Down...

Plata Hits $1 Billion ARR in Record Digital Bank Growth

Plata Rocks the Boat with Rapid Revenue Growth When a digital bank like Plata rakes in $1 billion in Annual Recurring Revenue (ARR) within just 3.5 years, you can't just shrug it off. That's blazing fast by any standard, especially for a financial institution. Emerging from Mexico, this bank's rocket-like ascent is flinging the doors wide open for what's possible in the...

Clean Power Alliance's Bond Deal Secures $91M Savings

CPA Triumphs Yet Again With Bond Savings I'll tell you, the Clean Power Alliance (CPA) just hit the jackpot again. We're talking a $1.4 billion energy prepayment bond deal that locks in a whopping $91.1 million in savings over the next seven years. Not bad, huh? A Closer Look at the Numbers CPA's charm—besides being the top green power supplier in the U.S.—is spinning...

U.S. Millionaire Surge: Market Waves or Mirage?

Flashing Billions: Minting Millionaires at Breakneck Speed It sounds like something out of an 80s movie: every single day, over 1,200 folks in the United States become millionaires. Yep, you heard right. The UBS Global Wealth Report 2026 threw that number out, and it sure caught my attention. It's not everyday you hear about the U.S. cranking out millionaires like they're...

Ama La Vida's New Coaching: More Than a Financial Plan

Breaking the Retirement Myth Retirement ain't just about sailing off into the sunset with a fat wallet. What happens when the honeymoon period of the "golden years" ends and you're left pacing the floorboards, unsure of what comes next? Enter Ama La Vida's fresh approach to retirement coaching, tackling the side of retirement that's rarely spoken about: identity,...