A Channel in action

Adani Enterprises Daily Chart showing a Channel

A line joining the top A with the first lower top C is extended and forms the upper part of the downward sloping channel.

Another line is drawn from the first bottom B parallel to line AC.

This is the lower part of the downward sloping channel.

Observe how price stays within this channel.

Support is taken at D and F.

Resistance is taken at E.

Price breaks through the channel at point G.

Notice how price takes support on top of the channel at point H indicating role reversal of the upper trendline.

Disclaimer: The views given in this blog are for educational purposes only. Readers should exercise personal discretion and take expert advice before taking any action in the stock market.The author of this blog is not responsible for any losses which anyone might incur in the stock market by acting on these views.  

Emotional brain vs Intellectual brain

“I don't want to be at the mercy of my emotions. I want to use them, to enjoy them, and to dominate them.” ― Oscar Wilde

We have two brains.

1] Emotional brain

2] Intellectual brain

Thinking is done by Intellectual brain. It thinks logically. It decides on the best choice in any given situation.

However action is taken by the emotional brain. Emotion is the power which drives action. Emotional brain does not think logically.

“The heart is a strange beast and not ruled by logic.” ― Maria V Snyder

It has its own simple logic. It is driven by gain and pain. It is programmed or conditioned by gain or pain in the past. It does all the things where there is gain and avoids all that has pain.

When Intellectual brain and emotional brain decide the same, it gets done. Problem arises when they differ and their decisions are not the same. 

Emotional brain wins always!

For example, smoking. Intellectual brain knows about all the ill effects of smoking.But yet the person smokes.That is because his emotional brain decides to smoke.

It decides to smoke based on the positive memories and positive effects of smoking. There is no gain in not smoking. Also there is no pain in smoking.  So the learning about the ill effects of smoking has not affected the emotional brain.

The sad reality is that only experience of gain or pain can change the emotional brain.

Thoughts or logic cannot change the emotional brain.

That is why it is so difficult to change any habit.Many smokers have stopped smoking when they had a heart attack.That is because they experienced pain and associated it with smoking.

We can manipulate the emotional brain.

That will be in another post.

Taming the ghosts of the past

One reason for lack of peace of mind is your past.Your past has mistakes and blunders.Your mind reminds you of the past.You think about how different life would have been if a different choice was made in the past.You mull over the missed opportunities.You regret your past and wish there was a way to undo it or there was a time machine to rewind time.You realise that there is no way to change your past.

This realisation is painful and you feel sad.

Is there a way out?

Life happens in the present and you miss life if you are in the past or future.

What can be done to overcome regret and come to terms with the past?

1] Acknowledge: However painful it may be, don’t avoid thinking about what is causing you pain. Identify exactly what is causing you pain. It is okay to feel low or shed some tears.

2] Analyse: Analyse what was the mistake. Was it your mistake or was the situation beyond your control?

If it was your mistake

Society wants you to be perfect.

Teachers want you to be perfect.

Your family wants you to be perfect.

You want to be perfect.

But the reality is that you cannot be perfect.

You are human.

You will make mistakes and blunders.

It is okay to make mistakes and blunders.

You should learn from them.

Vow not to repeat the mistake again.

Shift your focus from sadness to learning.

It will make you feel better.

If situation was beyond your control

Maturity is realising that everything in life does not match your expectations.

You have freedom to set a goal.

You have freedom to work for it.

But at times you cannot control the result.

You do not have full control over your situation.

That is the reality whether you like it or not.

3] Follow the Serenity prayer: