The other side of the trade
#trading #btc #bitcoin
Trading has this stigma attached to it, everyone thinks they can come and make their millions. The reality is, 90% of new traders lose 90% of their funds in 90 days.
I've talked for years about the negative side of trading (trust me, I've done this over 20 years) Trading is often perceived as a wonderful, fabulous lifestyle. Cars, yachts, jets and women! Probably fueled by films like the Wolf of Wall Street. But not many people like admitting to the other side of the traders lifestyle. Of course, it's nowhere near as glamorous - it sure as hell won't get social media likes or follows. But it's there and it's real!
There are a couple of main points that I want to touch on, especially for you newer traders coming to find your fortunes.
1) Trading can be boring! Yes, boring as shait. If you are used to having a 9-5, you do not realise the effects (good and bad) on having human interaction throughout the day. You might have a partner you live with, the family. But what about when they go to work or school? You are left with your own thoughts. Yes, this can be dangerous!!!
The issues can include lack of motivation, uncertainty in what to do, overthinking. On your bad days, you have nobody to comfort you and on your good days, you have nobody to share the excitement with! Joining communities can be a good fix here, providing you find a good one. This doesn't have to effect your trading, your strategy or anything else - but interaction could save you from the loneliness.
The solitary nature of trading can sometimes lead to feelings of isolation and loneliness. Without the support and camaraderie of others in a similar field, it can be challenging to share experiences, discuss strategies, or seek advice. Additionally, the pressure and stress of making high-stakes financial decisions can further contribute to a sense of isolation.
2) STRESS - Stress is a huge factor for a trader. Stress could also stem from the loneliness, stress when dealing with finance is an area where a lot of people suffer, traders and non traders alike. The issue is for traders, stress is often self inflicted.
Most new traders come to the market with a view of it's easy, fast paced, exciting and therefore have the perception of making it big.
If it was this easy, people wouldn't spend 7 years becoming doctors or lawyers. Instead they would follow the money! Come on, who wouldn't - Yachts n all.
It's this popular belief that usually drives traders into the stressful state which becomes the norm until they give up!
To counter the loneliness and try to make it big, traders (probably you) I know I did! look at indicators, try to take on as much info as possible! Which takes you down this path.
Indicators. there must be a holy grail, a silver bullet? 100% winning strategy? People waste so much time on retail indicators thinking they will be the one to find the edge. You would be better off having a trip to Vegas and playing the first slot machine you spot!
The next issue is - too much data or the attempt to obtain too much of it! I remember when my setup matched this below (if not more screens)
This is like trying to read 9 books at the same time whilst writing essays in 6 different languages. All of these factors will 100% add to your stress.
You might have anxiety when executing a trade, or feel the burden of stress whilst in a trade. Scared to see the numbers go red and too eager when they go green?! Yup been there, done that. So has every trader out there.
Stop feeling like this.
Creation of a strategy...
All you need to help combat these types of stresses, is find an edge. The edge could be very simple - from reading books, stepping away from the charts, viewing higher time frames, moving away from social media influencers. All the way through to mastering one instrument.
When you see indicators like the image above, what happens if two are in one direction and the rest in another? You start to argue with yourself, you miss good trades and you end up taking bad ones. This leads to stress and then you realise, yup your lonely!
What a cycle to be trapped in!
Now how about you flip the thinking here? Less charts to stare at, less indicators to confuse, more time to read, exercise or simply go play golf. Your edge does not need to be technical, fancy or shown on 48 screens.
Sometimes less is more and this can combat the stress and golf is always a winner for loneliness.
