We have all heard that line before but have you really lived through it? Have you experienced true financial loss at a level where you didn’t know where or if you would get the money for that next mortgage payment or even that next meal? Have you gone through a divorce and lost your family and fortune at the same time? Or worse yet, have you experienced the loss of a loved one due to an unforeseen illness or accident? Life is both incredibly hard and wonderful at the same time. I have been through some hard times myself. For one, I lost my mother when I was 15 years old unexpectedly. In the blink of an eye, she died and my support system, the person guiding me through life, the most important person in my life was gone. While the next few years were very hard, I look back now and realize how that event really helped me live the amazing life I live today. My relationships with loved ones are so strong and incredible, I appreciate every minute of every day no matter what I am doing, and much more. I now live an amazing life because of that unfortunate event when I was 15. Unfortunate you see goes hand in hand with fortunate.
Trading is a difficult challenge that will test your emotions more than you can imagine. From birth, we gravitate towards things that make us feel good and run from things we fear. If you take this instinctual and conditioned action in trading and investing, you will lose. For example, if you wait for news and charts to look “good” before you buy into a market, price is already high and at retail prices at that point. You can’t buy when price is at retail levels and profit consistently. If you sell into markets when everything including news, indicators, and opinions are “bad”, you are selling when price is low and at wholesale levels which is the last thing you should do. The goal is to buy low and sell high. You must understand that proper trading is not easy on the emotional side and you don’t want it to be. If it were easy, everybody would be doing it and making money but that is just not the case. The people who do well over time are the ones who understand that the path… Continue Reading
