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TYPE TWO STRUCTURE
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Notice the natural order of things. Work with it rather than against it for to try to change what is so will only set up resistance.

We have identified Type One structure as being based in the left hemisphere of the brain. Type Two structure is located in the creative part of the brain. Type One structure attempts to solve problems (quit losing); Type Two structure is geared for action that brings something new into being. Rather than solving problems, it creates results. The contrast is not unlike the difference between classical physics and quantum physics. Classical physics believes that you have to have something to make something else. Quantum physics maintains that something can be created from nothing. Classical physics say that "stuff" comes from "other stuff." Quantum physics says "stuff" comes from "nonstuff." In Chapter 11, we will put this approach to practical application in realigning our own structure.

When you are successful in solving a problem, all you have is the absence of a problem. You still may not have the result you desire (to be consistently profitable). Our Aristotelian problem-solving mentality has become a way of life. Most of us never consider an alternative approach.

On the national political scene, discussion centers on the problem of the deficit, the problem of inflation, the problem of the homeless, the problem of taxes, the problem of AIDS, the problem of education—ad infinitum. The greatest leaders in history were not problem solvers, they were builders and creators. Franklin Roosevelt and Winston Churchill were not trying to solve the problem of the Axis in World War II; they were building a foundation for the future they wanted for the entire world.

Problem solving certainly has its place, but it has not proven effective in creating winning trading attitudes. Most often, it changes nothing. Here is the key. The path of least resistance in problem solving leads to moving from worse to better and then to worse again. You take action to lessen the intensity of the problem. As the intensity lessens, you exert less effort and less motivation to take further action. This sets up the typical figure-eight pattern where there may be much action but no real progress.

To state this another way, in a problem-solving mode, as soon as you become successful you tend to quit doing the very thing that made you successful in the first place. This sequence is taking place in most businesses today. A new restaurant opens up and offers excellent food to attract patrons, and then falls back to more ordinary cuisine and loses customers. In a romantic relationship, we court each other, put on our best face, are constantly considerate, and make a commitment to marriage. As soon as we are married, we tend to quit doing all those nice little things that made the relationship attractive in the first place. For traders who are trading to solve problems rather than to create profits, the pattern is similar.

Medicine is interested in solving problems rather than creating an extraordinarily healthful existence. Medical science is not a method for creating health. Law is interested in solving the problem of crime rather than rehabilitating those who perform criminal acts. Law is not a method for creating sane civi­lizations. Psychotherapy, likewise, is not a method of creating peak experiences and personal effectiveness.

Carl Jung (1975), after spending years of dedicated work in this area, concluded that most often the problems themselves were irrelevant. He made this astute observation: All the greatest and most important problems of life are fundamentally insoluble. . . . They can never be solved, but only outgrown. This "outgrowth" proved on further investigation to require a new level of consciousness. Some higher or wider interest appeared on the patient's horizon, and through this broadening of his or her outlook the insoluble problem lost its urgency. It was not solved logically in its own terms but faded when confronted with a new and stronger life urge. (p. 29)

Problem solving does not enable you to create what you want (profits); often, it perpetuates exactly what you don't want (losses). You don't need to transform your trading—you need to transcend it.

Type Two structure is a whole other world where everything is automagically working for your progress in attaining your goals. There is little wasted motion or backtracking. You're at the control of a rocket ship where all the energy is channeled in the most appropriate direction, and everything you do seems to contribute to your progress with very little digression.

Rather than simply problem solving, with Type Two underlying structure you are now on the road to creating. Creating is a technique you did not learn in school, at home, or on the job. It is probably the most important skill you can master in order to trade well. It is very different from reacting or responding to circumstances. One happy note is that your present circumstances do not in any way limit your creativity in creating profits in trading. The creative process has a different structure from your reactions or responses to present circumstances.

A trader responding to present circumstances is imprisoned by them. Circumstances are the walls of your cell. When you are creating, you are free and your freedom is not threatening to you. All your life you have been told what, when, and how to do things. Be at work by 9:00, take only an hour for lunch, and don't leave before 5:00. PTA meeting is Wednesday night. Doc says I should get eight hours of sleep. I must accomplish the following projects before I'll be considered for that promotion. Quarterly taxes must be in by Friday. Rules and demands come from everywhere.

Now you enter trading, where there are basically no rules. You trade when you want, how much you want. You determine your risk. You create your profits. The average person has no education or experience to produce this type of results. Traders subscribe to newsletters and hotlines, or camp out with CNBC- FNN in search of guidance. The real guidance can only come from inside, and the results will always be in line with your underlying structure.

We will examine personal underlying structure in detail when we study Level Four in Chapter 11. We will explore the differences between a Type One and a Type Two underlying structure as they affect the markets, you, and your trading. At Level Five, in Chapter 12, we will put the entire package together.

SUMMARY

In this chapter, we have looked at how the world works, both inside and outside your body. We have examined the three principles that are in tune with nature and natural functioning:

•  Everything follows the path of least resistance.

•  This path of least resistance is determined by the always
underlying and usually unseen structure.

•  This underlying structure can be discovered and it can
be changed.

We then looked deeper into the structure of structure and distinguished between the almost universal approach to problem solving versus the more effective and profitable creating type of structure.

In the next chapter, we will examine how humans progress through any learned behavior. We will look at the five steps we all take from being a novice to becoming a master. In subse­quent chapters, we will start to take those steps ourselves.

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