The Dream Of The Advertiser.

The image is everything. We find out many images by radio, TV, and now through the computer also. These images work at conscious and subconscious levels. We see attractive model near to the picturesque new sports car and we understand that we also can become successful if we buy the new car. Sometimes we don’t realize completely, as so powerful images can influence our behavior. In classical psychological research, for example, doctor Robert Zajonc has shown that simple demonstration of image increases preference of this subject. The more we see the image, the more we like it. The image of the company or the action also can influence our trading decisions. When we see trailer how the company changes the world or as financial analysts praise the action, this is the influence of images on our preferences. After viewing of these images we can absurdly believe that the action has bigger potential growth, than actually.

Researches of doctor Donald MacGregor with colleagues illustrates, as the image of the company can displace decision-making. The better image of the company, the higher is potential of growth. In their research to group of the advanced students it was suggested to make decisions concerning set of sectors of the industry at the New York Stock exchange. Examples of sectors of the industry were: the software, pharmaceutics, and railways. The half of sectors of the industry unknown to participants consisted of actions with high return (more than 20 %) while other half consisted of actions with low profitableness. Participants estimated each industrial sector on the basis of positive (for example, size, activity and force) or negative image. It was also asked to estimate percent of return for each sector. The sector was estimated on size, activity and force, first of all on return. However, the image of the company had no relation with real state of affairs in the market that has been measured by the average return for each sector. In other words, participants allowed to image of the company to influence the forecasts.

This research has shown that images can have strong influence on our decisions. We face every day set of images, and it is necessary, that we understood potential influence of these images on our opinion. Don’t allow pictures to displace the forecasts of the price. You should know that sometimes you, contrary to logic, could have positive image of the company. Try to reduce to minimum its influence. Reconsider the trading to be convinced that you make decisions on the facts, instead of on exaggerated images.

Some say that trading is game on money, but let’s concentrate on judgment that trading is similar to gambling. Analogy – comparison between two concepts similar in some respects. People use analogies to explain or understand difficult theme. Trade – is difficult, as about 95 % of those who try to trade, come to grief. Thus, we should use analogy that either to understand trading, or to understand, that it is impossible task, as an attempt to survive, having jumped off from high rock. Some people will survive after falling, but the majority will not. If trading is impossible, the analogy will not help us very much. But, having assumed that trading as job, it is viable under correct conditions, the majority of beginning traders can use analogies to understand trading challenges. Make your decision and good luck!

Before you decide to make a forex investment or start forex trading yourself, better find a nice forex book and learn more about the currency exchange market – this will save you from tons of troubles and traps.