I don’t know what it’s like lately but it seems like I see a person running the risk of their lives or their limbs crossing a street or just crashing into people almost every day. The first thing I’m worried about is what’s so critical they may be at risk of injury. Was that significant time in there? If so, why did they spend the last night 3 hours watching Jersey Shore re-runs. Will they not know they’re going to get hit by a driver?
The second is that one which walks perpendicular to the walking traffic from a building without even a re-evaluation. Listen I’m not little guy and it’s not always pretty until we collide. No one wants to be named the man who searches the old woman, either. There’s some pretty extreme mean mugging going on if you pick up a lady’s goodwill luggage with a “I voted for FDR” tag.
Obviously that last part was a joke but when it involves markets, I see an equivalent concept. You don’t look at where you go. Here’s what we know:
- There’s risk in Trading: Once you risk money there’s an opportunity you’ll break down. That doesn’t mean all risks are created equal. To paraphrase what someone once said, the highest risk isn’t understanding the danger. Once you understand the danger, you’ll take steps to be very sure the danger is sensible to you. Accepting the danger is tough, it means you’re privatizing the end result.
- Privatize the outcome: Once you cross the road without looking, you’re betting that the driving force isn’t getting to be distracted, is alert, and has empathy. You’re putting the result in another person’s hands. Socializing the result. Eventually you lose that bet. Maybe not today or tomorrow or 5 years but eventually. In trading, the one that cares about your well-being the foremost is you or it should be. You can’t control what the market does but you’ll control how you react thereto and how much you’re risking. (I understand there’s no guarantee to be filled at your stop price.) Understanding when to cross when the risks makes the foremost sense is vital.
- Habits form happen quickly with reward: There are not any “I will just do that one time” actions in trading. It creates a habit. If you make money once you’re really screwed. likelihood is that you’ll try it again. If it doesn’t work the second time, chances are high that you’re getting to remember the 1st time more. you only lost a lesson and money. within the heat of the instant the brain features a way of creating anything seem rational. It makes “sense” to try to cross the road into oncoming traffic if you’re getting to be late and get fired. But it never is sensible to cross the road into oncoming traffic. Don’t be late to work when it involves trading. Meaning continually put yourself in an honest position.
For the sake of your physical and psychological well-being, look before you cross. once you stop brooding about what’s around you and ignore risks you stop acting in your best interest.
I will leave you with a few thoughts. Your inaction defines you when things aren’t aligning. Your action defines you when things are aligning. an individual on crutches should never jaywalk.
Anirudh Sethi explained best tips, strategies, and psychology behind stock market. He analyses international markets from indices, stocks, bullion, energy, forex and crypto. He is a trading coach and organizes online webinars and seminars for traders, with clients across the globe.