This psychological term (projection) is highly charged and comes at things from many different angles depending on the school of thought you follow. However in its simplest form it is the projecting of a psychic thought from the subject (me) onto the object (you or any inanimate object).
It often happens that with love we fall in love with a person who we think has all the qualities we are looking for, only to find out later on that the person we thought we loved was nothing like the person we “projected” the qualities we liked on to. I am using the love metaphor as I think it makes the concept quite easy to understand, but can be applied equally to any of life’s circumstances.
I was thinking how prevalent this is within the context of the markets and traders, investors, advisors, etc. We often see in a chart or a valuation something definite; however, if we are true to ourselves, and access our unconscious thoughts we may see that in many instances the “definite” is nothing more than a direct transference of some psychic material from ourselves to the “volatility break through”, the “PE ratio”, etc. Getting to see through this mind shattering matrix is one of the keys to the trading kingdom. I will let you know when I found mine 😉