What is the difference between sexual and financial transactions?
Because, in a first analysis, both give pleasure, when there are gains! They both offer rejoicing in some way.
It doesn't matter to the brain! The serotonin released is the same!
I propose that, at the end of this post, whoever is reading will not be able to see the "trades" in the same way. The reader will decide!
The primary difference is the trigger that allows the hormone to be released: the first interferes with primitive instincts of satisfaction through sex, the second releases through the primitive reward isntint.
In this way, both applications, analogously to what they propose to sell as a product, generate the same reactions, the same addictions and, ultimately, the same dependencies.
In other words, keeping in mind the differences and proportions of what they usually sell: the first pleasure for the things inherent to sex and the second pleasure for the things inherent to the accumulation of money, the client's maintenance mechanisms are the same, including regarding advertising techniques for keep them captive.
Another approach between them is the fact that there is an "intersection" of events. The result of the crosses will determine if the customer loses, wins, likes, dislikes, feels or does not feel, in short, if he will have the hormonal reward promised by the brain if a certain "crossing" is reached.
In sexual matters, as well as in the financial market, the brain evaluates trends, ups and downs (with the pardon of the pun), whether it is to go faster or slower, until you get to the climax.
In an exercise of imagination, one can extrapolate the use of all statistical and mathematical tools for the sexual act sold: momentum, trend, volatility, turnover and moving averages.
Therefore, if you can quantify the elements, then you can predict the moment of ecstasy, the moment of the appropriate crossing to win at the entry of the position or the exit of the position.
In this way, the brain, without taking any mathematics class, makes all these estimates and calculations, irrationally, to transmit, to translate, through sensations and feelings, all the moments of the act itself.
That being correct, then the brain has all the mental models and intuitive tools to do the same thing in traditional or digital financial markets.
Observing the multiplication of crypto-currency trading applications, their security and fees (yes, fees, hidden or not, that's what makes this mobile app business thrive!) one has the authentication mode of the individual it is also similar: for everything said so far, it is understood that it must be greater than the legal age allowed to operate!
In a more spicy exercise of the situation, the positions of support, resistance and congestion can easily be transported to the imagination. Also the different forms of analysis. (I'll let your imagination fly over it!)
If your imagination has flown far (and I apologize if you have blushed someone), depending on modesty, individual moral and conceptual values of each person, it is easy to understand why both subjects attract people so much.
Thus, it is also easy to understand the different profiles of account holders. In the same way that you have values for the first type of application, you also have values for the second type: proactivity, enthusiasm, intimacy, extraversion, excitement and feelings. All of this guarantees or not a good "transaction". (hence the word "transa" used for the first business)
Anyway, in fact, both come down to the "crossing" memento to decide what will be done:
- The preparation, the preliminary reading before the crossing of expectations will determine which way to go;
- The during, when there is effectively the crossing, comes the anguish of maintaining or not the movement;
- The after, which will determine whether you should maintain the condition for future returns, or should leave the relationship for a while;
Does this situation seem familiar?
The first big question to be resolved is: how and when do these crossings occur? That is why moving averages are available.
It is important to understand that, mathematically, the crossing of lines, curves, translates into the mathematics of sets with the connective of language "E", that is, that occurs when analysis A and analysis B have the same behaviors, without exception.
In other words, when two moving averages meet, it means that the crossing was obtained where all coincidences meet, bringing, at that moment, a mathematical singularity. it is the point of certainty of the action.
Just as in the first situation described at the beginning, as well as in any relationship, with anything that happens in life, there are always two analyzes:
A long one, which in the analysis of moving averages, has to do with a greater number of periods considered and a short one, with a fast situation, with few sampling periods.
It is not like that in life either: assess the macro situation so that, in the quickest situation, the best possible decisions are made? Isn't that how, from birth, the brain makes decisions?
In the same way, the choice of the periods of analysis is the one that best predicts the situation. In addition, not only is the meeting necessary (although it is already an excellent starting point), but the type of average to be used: linear or logarithmic, will define the speed of reactions to the data, to the operationalized volume.
For those who can't imagine: the linear average is based on a simple sum: 1+1 = 2, +1 = 3 + 1 =4 and so on, by smooth average accumulation. The logarithmic: 1x1 = 1, x 2 = 2, x2 equal to 4, x 4, equal to 16. That is, in just one period, it is equivalent to squared data from the same time period of the linear analysis. Did not understand?
Linear analysis is one in which you can see the panorama of a car, always at the same speed. The exponential analysis of the car is always increasing the speed. Will the observer be able to see the same details in the panorama? But, who had arrived before?
These choices make it possible to choose the type of moving average, in addition to the appropriate number of periods, to define the most appropriate point for making the decision whether to enter or leave the position. And further on, if you enter or leave the position again. (got the analogy?)
Of course, just like in real life, just a mathematical tool won't help. Moving averages should always be accompanied by the volume graph. Because? because the fewer people are putting or taking resources at that point, the greater the monetary jump (up or down) and the prediction will fail catastrophically.
Another confusion is that nothing, absolutely nothing, guarantees entry and exit, support or resistance. Many forget that there are thousands of people looking at the same graphs and with their little fingers itching to buy or sell. Translation, like love relationships, graphical analysis transactions depend on others and how much others (in addition to their winning strategies) want that encounter, that crossover.
Of course, deriving from these considerations there are, in the financial market, the most diverse theories, and times of periods and tools like fractals, to foresee trends, but all strategies are based on the temporal show !!!
As time is the father of actions and reason for anguish, the less the feelings are interfering, the clearer the reading of the path becomes, for any technique.
This involves study, discipline and understanding the situation surrounding the analyzed asset: humanly and technically.
Predicting does not mean guarantee, but if surrounded by several indications, it will guarantee more gains than losses.
As in love relationships that go where they have to go, financial relationships also have to reach the goal: that there is no harm, no harm to either side in the relationship.
It is worth noting, when sending flowers, your reactions, your feelings, the reactions of the creature you received and the feelings of that creature, to achieve the objective that many do not want to demurely highlight but know where it will end: ecstasy.
It is worth noting, when a financial order is given, your reactions, your feelings, the business's reactions and the business' feelings, in order to achieve the objective of having real gains, of reaching ecstasy as well.
So, answering the initial question, keeping the situations qualitatively and quantitatively, there is no difference between sex and the financial market.