Trading and Investing Challenges
When you decide you’re going to get involved in self-directed investing or dive into a trading career, you are typically making that decision because of the potential financial gain. You are making the decision because of the perceived benefit. What most people don’t understand, let alone even consider, is that they are about to step into a world of challenges that have the potential to really hurt their bank account and self-confidence all at once. One of the biggest challenges people face is having the self-control to execute a plan. The group that focuses on the financial prize tends to lose money whereas the group that focuses on the challenges seems to have a better chance at reaching their goals. It ends up being one group providing income and wealth for the other. Welcome to trading and investing.
Self-Control: This is a must. If you don’t have self – control (discipline) in other parts of your life, don’t think you will magically have it when you start trading. Trading will challenge your discipline more than you can imagine. From birth, we run toward things that make us feel good and run from things that we are afraid of. Proper trading and investing means you have to think the opposite. What I mean is that we want to buy low and sell high. To buy low when prices are cheap, you need to buy when everyone else has sold, with down sloping indicators, accompanied by bad news, and so on. The act of buying low and selling high is not comfortable for the human mind when trading and investing. In other parts of our lives we have no problem trying to buy things on sale. However, when speculating in markets, most people do the opposite for the reasons I just mentioned.
Don’t let the desire to reach the financial prize lead you to ignore the challenges that come with trading and investing. Instead, channel your strong determination into energy that allows you to follow your rules.
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