Humans DO NOT Change.


Humans don’t change, and
that’s such a beautiful thing. (intensifying swooshes) I always enjoy when I get
comments thrown my way. I’m not gonna call ’em insults, but there’s kind of an
implication behind ’em that I mean come on
man, what are you doin’? And there’s a little bit of implying that like I said, not insulting me but that implying that just
somethin’ fuzzy’s goin’ on. Somethin’ shady’s going on. But what I love about those
is that it actually proves one of my favorite parts about the tool of technical analysis,
charts, technical trading. You can use any of those
terminologies that you want. But the idea here and the beautiful thing about charts is charts
are based off of patterns and these patterns are
comin’ from those people or those, let me just say
things that make up the market. And what things make up a market? Well people does, humans do. Whether we’re talkin’ about a market for an individual stock or a market for an entire, for the S&P 500. Or are we talkin’ about a market for maybe a currency pairing? Or a futures contract? Or maybe just bitcoin for example, a cryptocurrency market. There are people that
make up those markets. There are humans that
make up those markets, and humans by nature are
very emotional creatures. We all have feelings, we
all react in certain ways to certain situations. And this over time can
become very predictable and develops and causes patterns. If humans beings were
totally random in nature, if we just behaved sporadically, there would be no point in marketing or advertising or psychology or anything because I mean everything’s
just so random, people are just totally random,
but that’s not the case. Sales, marketing, obviously
psychology degrees. They are all based on the human mind and you can base something
on the human mind because well the human mind
has its predictable portions, it’s not strictly random. So when you stop and think about that, well humans don’t change,
humans are what they are, they’re emotional creatures. And because human creatures behave in certain ways and because
these human creatures make up markets and these markets are then gonna be, have
price and value assigned to things over time, this
is what an entire technical chart is constructed around. And that’s where technical
analysis has its biggest kind of time efficiency factor
because you learn a chart, you learn patterns, you learn setups, you learn what to look
for, and it is what it is. Whereas if you’re doin’ more
of the fundamental analysis perspective, and I’m
not saying if you love your fundamental analysis and it’s making you all kinds of money,
awesome, that’s what matters. But what I don’t like
about fundamental analysis is you gotta go through that
big old stack of papers. And the crazy thing about that stack of papers is it’s always changing. In fact, it changes so much that if you are a publicly-traded company, then four times per year the SEC says yeah you gotta do an earnings call. You gotta reveal your earnings. Because that stack of paper is changing on a constant basis. Cashflow statements, income statements, balance sheets, all those
things are constantly changing. Whereas when it comes to charts and patterns, well those don’t change because humans don’t change. We’re emotional creatures. Now before I don’t wanna come across though as so therefore
Clay you’re just telling me that I gotta learn what a bull pennant is and then I’m gonna make millions of dollars, I gotta learn
what a hammer candle is, and then I’m gonna make
millions of dollars. There is more to it than that. But yeah at the core, all those concepts, all those ideas that a chart can give you, it’s just not gonna change
because when you boil it down to what it’s based on,
just emotional human beings. So before I wrap things up I’ll just get to this comment, ’cause like I said it really does beautifully
illustrate exactly why my hands are kinda cuffed
when I do certain videos because well I only have so much to choose from because of the reasons
we’ve just discussed. So Timothy says, “Kind of disappointing “that this video is almost
an exact carbon copy “of your NIO technical analysis posted “in the same general timeframe.” I know it is, isn’t
that a beautiful thing? Isn’t it beautiful that
I can pretty much say oh look this stock is essentially the same as this stock from a pattern perspective? Why? Well because there’s
only so many patterns out there that exist. There’s only a certain
amount of situations and setups that exist
in the world of charts. Because like I started off this video and like I’ll end, the human mind is not a random place. If it was random, then yeah,
charting wouldn’t work, nothing would work. Marketing wouldn’t work,
advertising wouldn’t work. Psychology majors, that wouldn’t work because what’s the point
of studying something that’s totally random, right? None of that works. But it’s not random,
therefore you can learn how behavior patterns work. How behavior patterns work, more specifically in the market. But those patterns are not unlimited because we have limits to our emotions because it is, you get the idea right? So don’t go out there
and say this person says the same thing all the time. Well probably ’cause it’s the
same exact behavior pattern that’s gone over time and time again. And like I said, this thing
is the exact carbon copy, I won’t deny that for a second. In fact, you are, I thank
you for proving my point on just how powerful and
time efficient charts can be once you learn how
to accurately use them. So if I can spark your interest in maybe learning charts, awesome. Or if I can maybe open
your eyes to the fact of oh, I guess yeah, that probably is why certain people only talk
about certain patterns or certain people only
focus on certain situations because it is just human
beings makin’ those up. So if you know how a
human being is gonna react before that human being reacts, that could give you an edge in the market, and that is the power
of technical analysis. First off, thanks so much for
watchin’ the entire video. Real quick before you
go, I wanna invite you to a live webinar, web class, training, workshop, online event,
whatever you wanna call it, but it will be me live revealing to you what I have
discovered that has allowed me to transform myself from being an employee to being my own boss, including how I had
only one losing day out of 73 days in total. I’m going to cover three
keys that have helped me unlock profitable
consistency within the markets. The first key is super weird but in a productive type of way. The second key is super awesome because it quite literally is wired
into our DNA as humans, makin’ it very easy to use. But in a cruel way, this becomes a pitfall for many traders. I’ll explain it all though including how to avoid the pitfall
that it creates for some. And yeah, the third key when you hear it, sounds way too good to
be true, but it’s not. And I’ll show you how it all works. Then at the end I open
it up for a question and answer session that
is again, totally live. Even if you can’t make the live session, please still sign up
as it will be recorded and you can go back and watch the replay that I will send you. Click the image on the screen or click the link down in the description box so you can get the date and
time and claim your spot, which I should note is limited due to the fact that this
truly is a live event. If you have any questions, let me know. If not, I’ll be seeing you soon.

6 thoughts on “Humans DO NOT Change.”

  1. Humans do change, i mean look at Religions .First we see how people in the past believed in so many Gods from the Greeks, Romans , Viking, Mayans, Aztecs, Inca and Egyptians and on and on. Yet we have two Faiths that are the most believed in now these two will die off just like the rest, so Humans do change.

  2. Let me try to interpret for you Clay: Kind of disappointing (that I don't know how to read a chart or form my own conclusion) that this is a carbon copy of another chart analysis you did (which I was relying on to decide where to buy and sell, but you didn't tell me so now I'm lost and can't trade this ticker)

  3. Funny how people bash technical traders I love day/swing trading SPY options sometimes individual stocks. You can do all the fundamental analysis you want in the end you don't no how that equates to actual % moves.

  4. Point well made. I like to use some high level fundamental analysis as a type of screener, but it's the technical that decides the trade.

    Anticipating the psychology of investors when they are making changes to portfolios is very helpful. Its handy to identify what might motivate them to dump a section of their portfolio, and anticipate where they are likely to invest as an alternative. The technical then helps to confirm the anticipated price action in possible alternatives. I'm then simply waiting to sell them what they want with an 'I've been expecting you' smugness.

  5. Fact 90% of new traders lose money.

    My new strategy, step 1 find new traders. Step 2 take the exact opposite side of trade. Step 3 make tons of money.

    Thanks for the new strategy Clay.

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