Fear Syndrome

Forex Trading

Engineering Ghosts

The fear syndrome that we carry as engineers is more powerful than we think.

It leads to arrogance!

The few of us crazy enough to become – hmmm,  let’s find something outrageous like… oh, yes… – forex traders, are still doomed by the “engineering ghosts”.

Take a look:

  • We simply love charts!
  • Oh yes, and indicators.
  • We are also non-detachable from our Excel spreadsheets.

We have a morbid relationship with all those things! The more complicated, the better. In our insecurity, we feel safe for being the ones who understand those things, those monsters created by our ingenuity!

We’re even very proud of them all!

And from the very beginning, we already have it ALL figured out.

“Forex Trading? Piece of cake!” – we brag – “Technical Analysis? Just another wording for statistics! Therefore, we – the statistical gurus – are ALREADY ahead of the game!

Right? Yeah… riiiight!



We end up buying EVERY trading book under the sun!

We have this instinct that knowledge will solve all problems like, by the way, we rightfully do so as engineers!

Our frame of mind is simple:

  • The more we study, the more we know.
  • The more we know, the better we trade.
  • Forex Trading? No problem! After all, we know it all!
  • Period!

Remember the statement above, about arrogance?

That’s why the seasoned traders always say: “Trading makes you humble!”

But engineers are not gamblers.

Therefore, once we figure out the “Statistical” part of the game, we turn our attention to “Fundamentals”.

“This” – we brag from the height of our brand new knowledge – “is the REAL logic behind forex trading!”

Right? Yeah… riiiight!

Since for us, the engineers, every cause creates an effect, the game becomes fundamentally (!) simple.

To our friends we go bragging: “Pay attention, Joe: the dollar will go down if such and such indicators go up. Trust me!“

And – of course – we all know exactly how that goes!


Parkinson’s Law

I have a theory.

  • “Beginner’s luck should be the first amendment to the Parkinson’s Law!”

Why? It seems that engineers always make money on their first few trades! Technically and “Fundamentally”!

Therefore, for a certain short period of time, they’re RIGHT!

Oh my God… what did I just say?!

Humble. This is one thing we engineers are NOT. Once we’re right, we’re always right!

And this must be another hidden part of the Parkinson’s Law.

We get cocky, of course. Why?

Well, take a quick look. Ask the engineers why they ended up winning those first few trades, and the answer will most probably be one of the following:

  • We studied it all, so we knew better than others.
  • We are the statistical gurus, so we obviously understood the game.
  • We positioned our trades aligned with fundamentals, of course!
  • It was all simple, clean, Cartesian… pure logic.
  • And we’re good at logic. Therefore, we won! And by the way, what’s the big deal?

For the occasional bystander, it seemed like the engineers lost their fear!

Right? Yeah… riiiight!


Let’s Become Monkeys!

And then, just like that…  BANG!

We all know what happens to our first few accounts, while we’re still cocky… right?

And why is that?

How many times have you heard from the engineers:

  • “The market is WRONG!
  • “It’s going in the WRONG direction.”
  • “There’s no LOGIC in what is happening!”

And so on… and on… and on…

Need I say more? If you’re already a trader, no!

At this very moment of truth, this group of engineers gets divided in three categories:

  1. Those that will die before admitting they’re wrong… and quit with the famous: “This thing just doesn’t work!”
  2. Those that will continue forever trying to be right… but will not quit.
  3. And those that will become monkeys!

Thanks for watching…


See you at the next page: Dr. Tumbili, The Monkey Trader.