We See What We Want To See

A person's eye
January 2, 2024
Perception & Markets | Emotions vs. Reality

My eyes deceive me.

Most days, I see rainbows and unicorns. 


On other days, I don’t see the rainbows.


Why do individuals have different memories of the same event?


Can we trust memories when individuals remember events differently?


Our experiences and our traumas affect our perception of the world.


Can we trust what we see if we project our emotions into reality?


Do your emotions affect how you see the market and your behaviour?


What is your energy level when you are bearish in a rising market?


What is your energy level when you are bullish?


Do you ignore price action and search for reasons to support your position?


You are not alone.


This behaviour is present in each of us, across all cultures throughout history.


We see what we want to see while ignoring the only thing that matters.


Price. 


Price does not lie.   


Price does not care what we think.   


Price does not care what we see. 


Only Price Pays.


Look at the Red Lentil’s parabolic move to the $60 area before the 41% sell-off. 


Yes, 41%.


How can this be?


We see that there are more mouths to feed and fewer lentils to feed them.  


We see that the world has only ten weeks of food supply.   


We see how the Russian invasion of Ukraine is reducing food supplies.  


We see several reasons for the price to move higher.


We don’t see the price dropping because more sellers than buyers exist.


We see what we want to see.

Red Lentils weekly chart

Trent Klarenbach | Klarenbach Research