The We phenomena in forex and financial analysis.

The We phenomena.

”If We break this level, i belive We will visit this level”

The following quote could be copied from 90% of the retail analysis blogs, tweets and other ”analysis friendly” posting platforms online today. This may seem as an encouraging approach towards the analysts readers, wich it most likely is ment to be. However, when the analyst claims that We will go this way or that way, the reader and the writer himself is more likely to imagine that he is not alone on the trade and that his bias is confirmed.

This is a very dangerous phenomena for new traders to get mezmerised by and talked into. Because everyone with the slightest experience of trading the financial markets knows this - there are no such thing as We, there are no such thing as Us and there are no such thing as You and Me. This is a game where the majority of weak participants loose everything going up against the big boys. So when your staring down at your charts or reading the earnings report, the feeling of beeing part of a team or a ”We” is only going to fill out the gaps of your insecurities. It does not matter if you are trying to make other people beeing part of your team or if that feeling is handed to you by another market participant, those types of feelings should be avoided.

Im not saying that everyone that includes the term We in an analysis is wrong in their actual analysis.  We all know that to be a good analyst you dont have go be an extraordinary trader. And im not saying that anyone has ever used this to trick or fool their viewer, i belive the term is used with genuinly good (and unconscious) intentions. However, the lack of knowledge in regards to the fact that trading is a ”one man army” war should give you a slight heads up that the person posting the analysis might not be that million dollar trader that he (sometimes) claims to be, or (if you use the term in your own posted analysis) that you are not the million dollar trader that you want to be.

Instead you should embrace the fact that trading is lonley and that there are no such thing as you and me, only you vs. me.