Continue reading...Are your beliefs creating a barrier to your trading success?
Prior to Rodger Banister breaking the four minute mile barrier in 1954 it was a widely held belief that no human could possibly run a mile in under four minutes. The month following his feat, no less than 30 runners broke the four minute mile barrier.
What happened? Did these 30 runners suddenly develop better leg muscles or bigger lung capacities? Clearly not, what happened was far more powerful, it was the birth of a belief. Suddenly at the point of Roger Banister breaking that barrier he created beliefs within other runners that they could do the same.
We can liken his feat to when a market reaches a support or resistance level and is unable to break through that invisible barrier. The longer that barrier exists, the more traders believe in it and the more they will set up trades using it as a reference point.
This reference point however is a double-edged sword, a sword that can turn in an instant to provide the...
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