Understanding yourself is synonymous with understanding the markets because as a trader you are part of the collective force that moves prices. How could you begin to understand the dynamics of group behavior, if you don’t understand the dynamics of group behavior, if you don’t understand the inner forces that affect your own? When do you understand the inner forces that affect your own? When you do understand the inner forces that affect your behavior and take responsibility for what you do and don’t do, and what you can or can’t do, you will begin to perceive how and why other traders comprising the group behave the way they do.
When you attain some degree of control over yourself, you can then see how other traders are not in control of what happens to them, like blades of grass, all bending to the force of the prevailing wind and constantly being stepped on. You won’t be able to see this until you are no longer a blade of grass yourself by evolving beyond the group mentality. Then it becomes much easier to understand the group’s behavior, anticipate what they will likely do next, and take advantage of it to the best of your ability. You will understand the group, certainly, to no greater degree than you understand your self. Creating rules to make yourself accountable is something we should do to maintain success, however, it is extremely difficult to abide by them.