| In the about section just released yesterday I noted that this would not be a personal blog and with that in mind something else came into my head just this morning that sort of pushes that envelope a bit. Since this is my site, I guess I can bend the rules a little bit. Still, this is more investment advice than it is a life story. We can just call it a life lesson if you like. One word of advice I have often heard in business and investments is that ‘business is never personal’. That may be true to some, but for a lot of us just trying to make a dollar out of fifteen cents can be personal sometimes. Trading is best accomplished with a clear head and no emotions because in reality it is... Full Story |
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In the about section just released yesterday I noted that this would not be a personal blog and with that in mind something else came into my head just this morning that sort of pushes that envelope a bit. Since this is my site, I guess I can bend the rules a little bit. Still, this is more investment advice than it is a life story. We can just call it a life lesson if you like.
One word of advice I have often heard in business and investments is that ‘business is never personal’. That may be true to some, but for a lot of us just trying to make a dollar out of fifteen cents can be personal sometimes. Trading is best accomplished with a clear head and no emotions because in reality it is just numbers and logic.
My number one rule when I started investing, which you’ll hear a lot out there, is to never risk money you can’t afford to lose. I followed this from my first stock purchase and continue to do so with every move that I make. I guess that is why I’m able to do so little trading these days. I have enough to be comfortable in life, but not enough to make any big steps forward. So I take little steps and do my best to insure that if I do take a loss, it won’t be the end of trading or much more. I could take this one step further by saying if you are risking any money in the markets, consider that money gone before you commit to a trade. Then if it turns a profit, you can be pleased about that, but if it is a loser then you have already dealt with that possibility. This should make it easier to handle if you get emotional. Also, it forces you to consider risk/reward before you enter a trade. If risk/reward isn’t right, why enter the trade in the first place?
Risk/Reward is an important concept to master, after all it’s just math. The more difficult part is mastering your own emotions. I haven’t found that factor to be as important in stock trading, though it is a part of it. Forex trading, though, has taught me a tremendous amount about myself emotionally. Really, the only reason I am convinced that I am cut out to be a forex trader is because I absolutely refuse to give up. Quitting is just not in my psychological makeup. Yes, I’ve taken my losses, but the more I lost, the more I handled it with less emotion. I’ve been taking a break from trading currencies so that I can successfully and consistently trade. I did have successes trading forex, and in actuality had more successes than losses, at least in quantity. Percentage wise, the majority of my trades were successful. Unfortunately, for a bit I let leverage kill me. I also don’t have total control over my own emotions, which contributed to a couple costly meltdowns. So for a while I’m concentrating on becoming a better trader, in what I consider to be somewhat calmer waters of the stock market
When I started this post I was feeling a bit discouraged, but also inspired as well. Getting this site up and running has been quite a challenge, and even though there have been quite a few folks who have checked in I’ve been struggling with getting the word out without appearing to be a spammer. I absolutely am not a spammer! I am just a guy, trying to attract viewers and create sort of a community on this site where I can teach others what I have learned and also learn more about the markets from those who know more than I. And yes I have ads, but this does cost money to keep alive. It does take a lot of time. If no one wants to support this, that is okay. I will continue to contribute because I know that I have already profited from the lessons I’ve learned and will continue to do so.
Before I veer too wildy off the original intent of this post, I’ll simply end with the bottom line version of my philosophy. The bottom line is, don’t let anyone tell you what you can’t do and never give up. As investors, we’ll take losses sometimes. We’ll make calls that no one agrees with and actually be right sometimes. We simply have to stick to our plans. Find a strategy that suits you and works well and work that profit out like there’s no tomorrow. Keep going until you reach whatever goal it is that you are pursuing and always, always stay positive.
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