If you’ve decided to start Investing & Trading seriously, inevitably this question is coming to find you every time you invest or trade passionately.
“Who exactly am I?“
It isn’t a soft option filler of a question either. New entrants to the market may have avoided the question, unsure it has any relevance at all to trading. But as some of you may know, this question is utterly central to success if you want to move beyond the cul-de-sac that is passive anecdotal Investing onto the autobahn of active diligent Trading & Investing.
“What is this, an art class for social studies? I want to trade!“
No doubt that is the reaction from some, but let me ask you to consider this quick exercise.
Have you ever placed your money on the line in a sporting bet or had a high buy-in to a non-financial result such as a Final exam, & noticed your mood & behaviour prior, during & then immediately after the event good or bad? What things do you notice about yourself?
The chances are that you identified differences at every stage in your mood & behaviour toward others, including decision approaches towards spending ie your output.
Now take that experience at each stage & condense it into 1 hour, experience it. Now take that experience & multiply that cycle throughout the week as passionately as 5 times that single day, feel it.
Astute thinkers will identify a lot of emotional turbulence to contend with. Now add to that the anguish of losing money at the end of those daily cycles, week in week out, & quickly this has become an emotional roller-coaster of a week?
As if this wasn’t enough, there are two more layers to go. Take this turbulence you experience, & now imagine having to make decisions about adding more money to pay for another failed exam or repeating the same trade set-up despite knowledge that 3 times prior it failed. Will you retake the exam? Will you take that 4th trade?
Whilst undertaking all this, your partner or parents are scrutinising your spend on seemingly negative things that are proving unsuccessful, not only that but they have noticed changes in your behaviour & are full of critique & concern.
So now, who are you? How are you responding under market and personal pressure? What behaviours do you notice? Are your decisions involving money the same?
What we are interested in is not the best bits of your mood control or your behaviour, but actually all the faults, all the outbursts, the snap choices, inaction, procrastination, how they manifest & what financial decisions you’re prone to under each phase of these circumstances. Do you force things through without thinking or do you withdraw & perhaps fail to make decisions at all?
If you believe that without preparation or understanding about how you behave under financial pressure you can stumble through without turbulence, please think again. The good news is, if you know the emotions leading to behaviours XYZ are coming, you can prepare for them to reduce their influence until you’re skilled in managing yourself.
As an independent Investor, you have to become a Researcher, Analyst, Psychologist, Risk manager & drilled practitioner of your tools to a professional competence rarely found in the toolbox of most people. Is it any wonder, that the unsuspecting poorly prepared Investor so often fails at trading due to mismanaged expectations? Can you see why a course that claims to teach you to trade in 2 days isn’t worth the time?
We’ll have Courses & Lessons under our < Risk Profile Stack > tag available in every programme we produce because were committed to truth & our goals are aligned directly with those of our students in courses that grow with your development over the long term.
Can you afford to procrastinate?