Trading is More Than Making Profits
What do we usually think about when we are trading? I am pretty sure that your answer is something to the extent of, “I want to earn profits”. To be honest, there really is nothing wrong with that answer as it is one of the main reasons why join the fray in the first place.
However, trading in financial investment can teach us many things that we can apply in real life as well. For instance, if you have kids, what you do to them will make a huge difference as to what they will become later in life.
I actually have two kids. One 10-year old girl and a 15-year old teenage boy. They’ve grown to be responsible kids because I made decisions for them to grow that way.
I always spend time with them each and every day. I make sure that they clean up after they eat and I make sure that they do their homework first before playing their favorite sport or computer games.
I rarely ever scold them, because from the start, I become firm whenever there is something important and I become relax whenever I want to spend some quality time with them.
If you’re not sure where I am getting at, it is by making decisions that will ultimately tell your fate in trading.
What do you do when you keep on winning trades? Do you keep going or you stop and enjoy your winnings? On the other hand, what will you do if you keep on losing? Do you keep on trading or you stop and recuperate?
So you see? Trading is basically all about making decisions and those decisions can truly affect what is going to happen to you if you trade wisely or not.
The Market Doesn’t Care
Another thing that you have to understand about the market is that it is just an emotionless entity. It doesn’t care if you’re happy, it doesn’t care if you’re sad. It doesn’t even care if you’re winning or losing as well.
It just moves, it becomes different, because that is just the way it is. This might be a difficult pill to swallow, but that is actually the hard truth.
There is a reason why if you’re on a streak- even when it is winning or losing, you have to stop at some point and assess the situation. In such scenarios, you will always feel something. You feel elated when you win. Conversely, you feel down when you lose.
But no matter what you feel, the market doesn’t really care. It is like the game of basketball. The premise of the game is to shoot the ball in the ring. Pretty simple, right? But what usually happens is that we attach our emotions to it.
We feel happy when we’re winning and making shots and we feel angry or disheartened whenever we lose and we miss.
The same can be said when trading. It is therefore important for you to know that the market doesn’t really care and you should make decisions with a clear head.