How the Market Mentality Evolves; Positive Mindset and Attitude

By: Tom Allinder
July 17, 2008

Like many people I, have been watching the news lately; especially the financial news. All over the place, you are hearing the gloom and doom being spewed forth by many people on TV and in the financial news pages. It is true, there are quite a few companies in trouble out there. But, let’s step back and look at what has gone on
over the last few years…


Starting in the late 90s, there was the great advances in the markets via the internet and technology; it was referred to as the “internet bubble”. Then in the Spring of 2000, the internet bubble developed a leak then subsequently burst and all of the advances in many technology stocks were erased. The NASDAQ alone went from over 5200 intra-day in March of 2000 to a low in the 1100s in September 2002. There was a mild recession that followed the breakage of this bubble. Well, the money doesn’t just “go away”, the cuts in interest rates following the market collapse and the 9-11 attacks fueled the real estate bubble. The real estate fiasco is now being combined with high energy prices making it a double whammy. I have never heard so much negativity in the marketplace before in my life.

The Process of Negativity

Negativity comes at us from all angles; the television, print media, and sometimes our friends and family. This negative input eventually takes root in our subconscious minds. Once the negativity has been established at the subconscious level, it then becomes expectation and a self fulfilling entity… Now what did I just say? Negativity begets negativity. When the market is moving up sharply the positive input begets more positive happenings. This is why most people except the most positive thinkers, miss market tops and bottoms.

Retaining the Positive Mindset

It is important, in my opinion, to retain a positive mindset especially in bad times. Look for the opportunities. In today’s market, the financials, homebuilders etc are taking a beating. Many of these companies will not survive, but, those that do, will be the greatest bargains of the decade. I wrote in a previous blog that in the Chinese language, the English equivalent of the word “CRISIS” is represented by two characters. One character means “danger” the other character means “opportunity”. No matter how bad it seems, there is an opportunity in there somewhere. Only the person that truly thinks for themselves will see the opportunities!
Attitude

A person’s attitude is directly related to their results. What is the meaning of “attitude”? Attitude is a person’s thoughts, feelings and actions. If one harbors a negative attitude, their results will be poor. A good attitude will always lead to good results. Recently a person was bragging to me that they didn’t lose as much money anymore trading because they had become cynical. They were proud of their cynicism. I asked, “What are your results now?” He just looked at me and said, “Well that doesn’t matter, at least I am not losing money now!” I disagree. Cynics and negative people do not get results. I will guarantee you this: Everyone that earns any sort of fortune does it with a positive mindset and a good attitude!

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