Reaction - market, social, individual, unconscious

Reaction is a dominating part of everyone's life. Reaction to the securities market moves, reaction to social events, reaction to individual events and reaction to events unconsciously.

re·ac·tion (r-kshn)
n.
1.
a. A response to a stimulus.
b. The state resulting from such a response.
2. A reverse or opposing action.
3.
a. A tendency to revert to a former state.

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The noun REACTION :

1. a response that reveals a person's feelings or attitude
2. a bodily process occurring due to the effect of some foregoing stimulus or agent
3. (chemistry) a process in which one or more substances are changed into others
4. an idea evoked by some experience
5. doing something in opposition to another way of doing it that you don't like

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We can observe all facets of life are a reaction to what we sense but firstly from what we sense a series of computations take place in the mind before a reaction. It is these computations that determine how we will react to any sensory input.

So our mind receives sensory input and makes a decision using knowledge gained prior to the present time. One chap suggested bias is an integral part of decision making when reacting to securities markets. So it is that an individuals pre-conceived idea to react in a certain way when the criteria are met.

Having a plan on how to react to every sensory input gives one a feeling of control. What is over-looked in this assumption of control is that the pre-condition (bias) is the trigger for a reaction. If I want you to do X then I will do Y to get you to react how I want. This is both true on an individual and group basis and is easily observable in securities markets. If we get smart and are aware that we are being pushed a certain way (our biases being triggered?) then we can react contrarily or remain neutral or any shade in between.

Examples of reaction:

You feel hungry ... you eat or don't eat
You have an itch .... you scratch it or don't scratch it or apply anti-itch etc.
Your shares drop rapidly in value .... you sell them or don't sell them
Your pet is run over by a car .... you cry or think it is simply an occurence
You're approached by a 6'6" mass of muscle and anger ... you run or fight or placate or succumb

Every day in every way we are reacting to our sensory input and exceedingly more people are now vulnerable to or are being manipulated because they don't know. That is the unconscious part of reaction so please be aware.

Thanks.