Delusional Thinking

I am long and therefore hoping that everybody remains positive about the Europe situation. I hope and pray that our collective delusional abilities improve over time and that we continue to believe that only good things will happen to us in the future while collectively indulging in the worst possible behavior in the present. That we continue to believe that we will reach where we want to go while continuing to do more of the same things that has brought us to our present state. This by itself is not an issue. We as a race are, I think, hardwired to be optimistic about the future. The problem is that I want the market to believe this ONLY as long as I am long on the Nifty.

I will cut my long positions and SELL SHORT if Nifty futures trades below 5006. When that happens I will want that we soon realize that we are indulging in collective delusion and that the our current behavior will only end very badly for us. I will then want that the market discounts the bad end to the present and falls sharply.

I indulge in this kind of wishful thinking depending on the position I have on the Nifty. In that sense I am not very different from the rest of the market. This delusional thinking is however something that helps me to continue to stick to my system. If I could not attribute some reason however delusional to justify my trade, I would find it extremely difficult to hold on to the position demanded by the trading system.