Paradoxes: The Scorpion And The Frog

Spread the love

Paradoxes: The Scorpion And The Frog

The Scorpion and the Frog

by Janice Dorn, M.D., PhD.

Contributor

Tactical Investor

A scorpion and a frog meet on the bank of a stream, and the

scorpion asks the frog to carry him across on its back. The

frog asks, “How do I know you won’t sting me?” The scorpion

says, “Because if I do, I will die too.”

The frog is satisfied, and they set out, but in midstream,

the scorpion stings the frog. The frog feels the onset of

paralysis and starts to sink, knowing they both will drown,

but has just enough time to gasp “Why?”

Replies the scorpion: “It’s my nature…”

Aesop’s Fables

________________________________________

 

No matter who you are, how intelligent or how much education you have, if you keep doing the same thing over and over again, expecting different results, you are suffering from the most insidious form of insanity. This is self-delusion of the highest degree.

Years ago, when I first started to trade, I was so optimistic that I could make money consistently. I was smart, more educated than almost anyone I knew, a successful physician, and always had been able to study hard and master anything I put my mind to. I could do it, and nothing was going to stop me. I would work longer and more intensely than anyone else and show wonderful profits month after month.

Little did I know what I was facing, and that I was about to come head-on with the most challenging task of my lifetime. Simple, maybe…. but not easy. Not easy at all. After a few months, I found myself dancing as fast as I could; yet running on a treadmill going nowhere and suffering from vertigo, headache and a severe case of tick-itis. I studied and read everything I could lay my hands on, subscribed to service after service looking for the Holy Grail and struggling to make consistently successful trades. Why couldn’t I do it? What was wrong?

Is this so difficult? What about all the people who have returns of greater than 80% a year? They couldn’t be exaggerating, could they? After all, it’s in print and on a heavily subscribed website, so it must be true. Mustn’t it? So I studied more, subscribed to more services, learned new indicators, bought books, joined some chat rooms and saturated myself with information. This produced more vertigo, headache and sleep deprivation. I was on total information overload. I started sleeping sitting up so that I would not sleep too deeply and could awaken more easily at 4:30 AM (having gone to sleep at around 1:30 AM) to study and watch the markets before they opened at 6:30 AM.

I was in total immersion, so why couldn’t I make consistently successful trades? I became paranoid, thinking it was a kind of conspiracy since every time I took a position it went against me. I knew the stop and was stopped out in my minds, but we didn’t take the stops because I had faith that the position would come back. It was some misunderstanding or misinterpretation of the market that was responsible for the price spiralling downward.

Buy more. That’s it. Average down and keep averaging down and eventually, I will get it right. Eventually, the price will come back up, and I will be justified. Why isn’t the price coming back? I know it has to. After all, I studied it, charted it, listened to the gurus, read everything on every bulletin board, and it HAS to come back. Oh, that news that just came out…. Ugh! Must be false or overstated because there is no reason that the stock should be selling off like that.

I know it is coming back, so I will buy more. Wow!! Look at the size of the position now. Hmm. I better kick it up a notch and start participating on every message board and study every report and watch every tick every day for signs that life is returning and I can get back from underwater. Most of you know how this feels. I do. I have been there, lived it, and suffered losses from it. Life was miserable this way. I became depressed and irritable. I walled myself off from the rest of the world just trying to figure out what to do. I had dug a deep hole, and the only way out was to sell and take the losses.  OR-  wait and be in agony day after day, watching my account and my self-esteem (what was left of it) erode like shifting sands.

I tried too hard, studied too much, and pushed myself to the point of both physical and mental exhaustion. Why? Why did I not honor the stop, continue to hold on and even average down? I had to figuratively kill the frog and kill myself in the process. In order to be reborn, I had to destroy the internal self-defeating programming and start all over again. I had to step back, look at what I had done with a sharp and penetrating glare in the bright light of day. I decided to take the loss, to stop trading for a while, to take a vacation and center myself. My health returned. The dizziness and headache went away. I didn’t care so much about watching the flickering ticks (so, at least, I was in remission from a severe case of tick-itis).

It was not the market, the charts, the software, the gurus or anyone/anything else but I. I was my worst enemy. Nothing was going to change until I got right with myself.

…To be continued….

The most exquisite paradox is that as soon as you give it all up, you can have it all.

As long as you want power, you can’t have it. The minute you don’t want power,

you’ll have more than you ever dreamed possible…

Ram Dass

‘ 2004 Janice Dorn, M.D., PhD.

Paradoxes: The Mortality of Mortals

by John Tyler CEO www.Trader007.com

If you think that this ‘Law of Paradoxes’ is for eggheads, think again. It could mean your life!

A friend has just been diagnosed with highly malignant cancer. He knows that the treatment, even if successful, has many adverse side effects. His business has been successful and based on 110% effort, willpower and pure doggedness. Hence, he believes that he’ll beat this by application of the same principles.

This is the ultimate Paradox Law: our apparent success can kill us.

There is statistical proof of this Law in action in the area of health and disease. I first became aware of this in the 1980s when we were looking at the mortality rates from a specific type of malignant tumour. The surprising finding was that the survival time related to the time of diagnosis and not the size of the tumour! This was unable to be explained even by the adverse effect of treatment. Now we know, however, that the mental effort of the unfortunate victims acted to ensure their eventual death, no matter how advanced the tumour was at the time. These results are now masked by more radical life-extending therapies, but it may be that the window has just been opened wider.

The Law of Paradox here is that focusing on the disease, tumour or whatever, actually strengthens its hold over the victim!

There are right ways to think, as well as to act, for both health and trading are concerned. All our efforts can be tainted by an ignorant approach. Don’t become another statistic proving the effectiveness of the Laws of Paradox.

‘ Cured yesterday of my disease,

I died last night of my physician.’

  1. Prior 1664-1721: The Remedy worse than Disease’

‘ 2004 John Tyler CEO

www.Trader007.com

 Other stories of interest

Insider Buying And The Coronavirus Pandemic  (April 24)

Market Correction 2020; Long Term Trend Still Intact  (April 15)

Stock Trends & The Corona Virus Factor  (March 14)

Misdirection And Upcoming Trends For 2020 And Beyond   (March 13)

Trading The Markets & Investor Sentiment  (March 3)

Brain Control: Absolute Control Via Pleasure     (Jan 20)

Indoctrination: The Good, The Bad and the Ugly    (Jan 15)

Dow Transports Validating Higher Stock Market Prices  (Dec 30)

Global Trading Volume is Declining & It’s A Non Event  (Dec 20)

Dogs Of The Dow Jones Industrial Average  (Dec 10)

Trump Stock Market: Will Impeachment Hearings Derail This Bull   (Nov 21)

Negative Thinking: How It Influences The Masses  (Nov 15)

Leading Economic Indicators: Finally in Syn With The Stock Market?   (Oct 28)

Dow Stock Market Outlook: Time To Dance or Collapse (Oct 25)

What Is Fiat Money: USD Is Prime Example Of Fiat (Oct 13)

Yield Curve Fears As Treasury Yield Curve Inverts (Oct 12)

Current Stock Market Trends: Embrace Strong Deviations  (Oct 2)

Market Insights: October Stock Market Crash Update  (Oct 1)

BTC Update: Will Bitcoin Continue Trending Higher  (Sept 17)

Stock Market Forecast For Next 3 months: Up Or Down? (Sept 16)

Stock Market Crash Date: If Only The Experts Knew When (Aug 26)

Nickel Has Put In A long Term Bottom; What’s Next?  (July 31)

AMD vs Intel: Who Will Dominate the Landscape going forward (June 28)