Left brain/right brain, reality and trading the markets by R.E. McMaster, Jr.
The starting point for success in trading the markets profitably is to perceive market reality accurately.
While this may sound obvious enough, most traders enter the marketplace with preconceptions, biases
and incorrect perceptions of market reality. They soon learn, however, that the market is a ruthless
taskmaster. You either line up with the market's reality, or you lose money.
The market's consciousness, it seems, justifies itself in its harshness, as it points out to traders that there
are only three realities possible in the marketplace. Markets can either move up, move down, or drift
sideways. This simple recognition or, perhaps, the not so simple recognition of which of these three
realities is active at any particular time is all that is necessary to trade successfully. All of our analyses of
the markets are supposedly for the purpose of bringing our focus on the market reality so we can trade