Inductive Versus Deductive reasoning for investing in the markets 

Inductive thinking teaches you to actually look at the data provided with a different set of eyes and not to accept as factual any data, even if it seems to come from the most pristine of sources ; it teaches you to break down everything, and reanalyse it all through a different lens. In applying this form of thinking, you dramatically cut the amount of flawed data that goes into your analysis.  Instead of simply blindly accepting raw data you actually decide to objectively look at this raw data and then decide whether it should or should not be used. It is widely known that government data is extremely manipulated (and this has never been truer. Since 2008, the Central bankers have manipulated the markets and the data in way never seen before in the history of the markets) and thus no matter how prestigious the company that provides the data, the data is and will always be flawed.

How to use Inductive thinking and Mass Psychology to win in the markets

One of the main tenets of inductive thinking is to build a comprehension of the basic rules of mass psychology; by reading past and present issues of the market update you will slowly but surely understand how to apply mass psychology to not only help you with your investments, but you will find out that it can be applied to improve all aspects of your life.

Remember the two most important principles for success are patience and discipline and so do not feel that you have to rush out and buy the plays in our portfolio; take time to understand and learn our investment rules and the way we operate before deploying your money. New opportunities are always presenting themselves so if you miss one, there are plenty more around the corner; the problem with most is that instead of embracing opportunity when it knocks, they are busy waving goodbye

New thoughts on the subject  19/8/2015

making money in the markets using inductive thinking

Understanding the basic concept of mass psychology is imperative as it is the only tool that pushes the mind to focus on inductive thinking as opposed to deductive thinking. Deductive thinking is where you are given a certain bunch of facts, and you use these facts to come up with a possible outcome. However, what if the facts given to you are faulty or worse yet fake, then no matter how thorough your analysis, the result will be flawed.  Inductive thinking involves using the higher part of the mind.  Here you search for the facts and then use these facts that you obtained from your own observations to draw a conclusion and decide a possible outcome.  Inductive thinking is one hundred times superior to deductive thinking. Very few are able to understand this process, let alone use it effectively.  The reason for this failure is that most market participants are trained to believe that they have to work very hard and spend an endless amount of time to improve their skills.  Nothing could be further from the truth. The general concept can be summarised as follows, you should be very nervous when everyone is happy and vice versa.  Once you understand this, you can then work on fine tuning your understanding of this very powerful and invaluable tool.  We can be of great help in this arena because mass psychology plays an integral part in our analysis.

At TI our focus is on the behavioural patterns of the average individual (mass mindset). It’s the mass mindset that truly interest us for therein lies one of the most powerful secrets to becoming a truly successful investor. We would like to take the time to remind everyone that before one could walk or run one had to learn to crawl; before one could crawl one had to want to crawl. Thus, if you seek to change you must first want this and then understand that change is not something that comes about without some effort; effort is necessary because one has to deprogram one’s mind from old concepts that one was falsely led to believe.

Your mind has been trained for decades to accept what mainstream, the popular press and so-called experts deemed to be true. Here at TI we view no one as an expert (this includes us); we are not in awe of any being on this planet nor shall we be in awe for anyone who claims to know it all. We do , respect the giants from the past, and few from the present who go out of their way to state that they don’t really know much but are open and willing to learn as much as possible. Idiots are forever clamouring for attention while the wise desperately seek to avoid it for they know their efforts are best directed towards seeking more knowledge rather than wasting time basking in the light of false glory.

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