How to Become a Better Trader: Break Free from the Herd
March 23, 2025
If you want to master trading, burn this truth into your mind: never follow the crowd. Print it, pin it, and revisit it over the years. As you evolve, its meaning will shift—until one day, you no longer need the reminder because you embody it. True mastery begins with self-awareness. If you mimic another, you kill the real you, becoming a puppet, forever dependent. Your vision narrows to what you’re told to see. In essence, you become a glorified blind man.
This is why the masses are condemned to repeat history—forever trapped in a cycle of failure. They look but do not see, hear but do not understand, and think but produce nothing original. One could almost call them the walking dead. Many traders admit that their peers—and even family members—struggle to process anything beyond a couple of pages. This is the new world order: the dumbing down of the mind.
The Crowd: Prisoners of Their Own Making
A paralyzed body is unfortunate, but a paralyzed mind is a tragedy beyond measure. Humanity holds the potential to stand among the gods, yet most can barely rise above beasts. Wild animals serve a purpose—can the same be said of the average individual?
To rise above the herd, to truly become a superior trader, you must think for yourself. The crowd is not just wrong—they are engineered to be wrong. Stand apart, question everything, and trade with ruthless intelligence.
Despite the strong rally, the gauge on the anxiety index has not moved at all, which is both stunning and fantastic. Stunning because this is one of the sharpest rallies of all time, and it should have pushed the needle out of the madness zone. Wonderful because it tells us that this Bull market has a long way to go before it dies. Dow 30K is going to be taken out with ease, probably in less than 12 months. Market Update May 2, 2020
This week one would have expected much lower bearish sentiment readings, but instead, it stands at 53, and the anxiety gauge is still locked deep into the madness zone. This tells us that the crowd is still sitting on the sidelines and that the Fed is actively pushing the markets higher. Market Update May 14, 2020
Another Day, Another Illusion: Welcome to the New Reality
Look at the data—this market defies history. It was the shortest bear market ever, followed by a relentless rally, yet the masses remain paralyzed with fear. Why? Because the world as they knew it was gone. Millions of jobs will never return, entire industries are on life support, and new sectors are rising from the wreckage. Chaos reigns, uncertainty thrives, and yet the market marches on.
A New World Order: The Fed’s Grand Illusion
Reality is being rewritten—again. The Fed is not just manipulating markets but reshaping the financial landscape itself. Dismiss this at your own risk. The masses will scoff, convinced the Fed cannot sustain this illusion. But history is clear: the masses always lose. The awakening everyone dreams of? It will never come. The herd doesn’t want the truth; they crave comfort. You can lead them to water, but they will die of thirst before they question the script.
Master Psychology, Master the Market
The key to trading isn’t in indicators alone—it’s in understanding mass psychology. The market is not driven by logic or fundamentals but by fear, greed, and herd mentality. Study the crowd, read their emotions, and profit from their blindness. The masses are predictable. You hold the real power if you know what they will do next.
Fight the Fed & End Up Dead
The Fed didn’t just end the previous bull—they executed it. The old bull had to be put down prematurely, and they have birthed a new hybrid beast in its place. This bull isn’t just here to kill bears; it’s also designed to destroy reckless bulls.
Right now, it’s only a cub. Imagine the force it will unleash once fully grown. The world is on the brink of events few can even comprehend. The pandemic was just a tremor before the real quake. Adapt or be buried in the wreckage.
The current set of Vaccines is Rubbish.
The first batch of vaccines will fail spectacularly, for something called “evolution” will kick in. The coronavirus will morph and evolve like its first cousin, the flu, and grow faster than anyone has ever imagined. Most will panic, curse their governments, fight the trend, pray or do a combo of all the above. The astute player will observe from the sidelines and understand that if your immune system is not compromised, you are 99% in the clear. Hence, the solution is to keep yourself in shape. If you are overweight, start working on the weight factor; if you are stressed, start working on reducing your stress.
Food for thought: we have about 328 million people in the US and 4.43 billion in Asia. Yet, more people have died in the US than In Asia. So what gives? That’s the multi-billion dollar question. The answer is simple. However, contemplate it, and we will discuss it in future updates.
Stress leads to more inflammation.
Higher levels of inflammation lead to a weakened immune system.
Our study showed that high levels of IL-6, CRP and hypertension were independent risk factors for assessing the severity of COVID-19. The risk model established on IL-6, CRP and hypertension had the highest predictability in this study. Besides, IL-6 played a pivotal role in the severity of COVID-19 and had a potential value for monitoring the process of severe cases. https://bit.ly/2zhGrPD
People always focus on the created problem, not the real problem or the real issue. Coronavirus is a manufactured crisis created for those who don’t want to see or hear and will do the job it was designed to do. It will lead to the demise and downfall of those who embrace the fear factor, and unfortunately, that is a massive percentage of the populace.
However, if you stand above this noise and realise that fear only works because you allow it, you can kill this monster with a simple feather. It’s too late to cry over spilt milk. Looking at the situation from a logical perspective (minus the emotional factor), it’s a monumental disaster from a financial angle. As the equation must balance, it will provide those with the foresight to see the actual pattern with a tremendous opportunity to lock in spectacular gains.
Conclusion: The Manipulation Game & The Next Market Evolution
Sentiment data paints an anomaly—markets are soaring while the masses remain gripped by fear. Historically, bullish runs fuel optimism, yet negativity lingers. Why? The Fed is orchestrating one of the most aggressive market interventions in history.
We’ve tracked various strategies, and one of the most reliable—the strangle or straddle—has imploded. When executed correctly, this method typically delivers a major win on one side of the trade. Not anymore. Losses are stacking up on both ends, a clear sign of artificial forces suppressing volatility and distorting price action.
The Observer’s Take: Adapt or Be Obliterated
We’re not here to lament manipulation—we accept, adapt, and profit. Complaining is for those who fail to evolve. If you still believe in a “free market,” you’re trading a fantasy. The only truth that matters is price action. Manipulation isn’t an anomaly—it’s the rule, and it always has been.
For now, short-term options are off the table. Until this distortion corrects, we’re not touching them. Options are always risky, but in this environment, they are a trap. The Fed’s goal is clear—force the masses into this bull market, whether they like it or not. Cash will be a liability, and soon, even the skeptics will have no choice but to chase the rally.
The Dow’s Next Evolution
A new bull market won’t be confirmed until the Dow decisively clears 29,551 on a monthly close. When that happens, expect fireworks. 36K is just the beginning. The real target? 59,100–60,000.
Sounds insane? Good. The best trades always do. Just like when we called Dow 30K—met with laughter, then vindicated. The cycle repeats. The moment the impossible starts to look plausible, that’s when you know it’s coming.
For now, the market’s job is to shake out weak hands. Our job? Stay ahead of the herd.
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