Nobody will tell you this.
I am sure everyone is aware that the Human brain is wired to be optimistic, it’s a default program. That has ensured the survival of our species. Handfuls of people who do not have this wired correctly suffer from depression and suicidal tendencies.
Aspiration and hope is a good thing, it keeps you going. It helps you strive and change the status quo. In fact, that is how GOD is ‘playing’ the entire game. Think about it, without a sense of doership and intention of changing the status quo and constant improvement, why would anyone do anything!!
All of life’s achievements, right from the invention of fire to the wheel can be attributed to this constant strive for improvement, the optimist who kept striving.
This is a reason why marketing plays such a BIG role in financial products. People will buy from a person who invokes a sense of optimism and hope rather than from someone who is giving pragmatic, rational advice. This is a topic for some other blog may be, but today I am going to dwell deeper on the ‘profession of trading’
I have spent enough time with my broker friends and have seen the records to conclude that Retail dabbling in futures and options is the functional equivalent of a pig in a cage fight with a lion. His fate is sealed the moment he decided to play the game.
Now, its still OK if the pig is doing it for recreation. We can simply write it off as ‘entertainment expenses . The problem comes when the PIG thinks that he is in the profession of speculation.
Here is my unsolicited advice.
If u need to earn from markets to pay your monthly utility and grocery bills, do me a favor. Leave the addiction and Get a job!!
Nobody will tell u this, people will shove motivational bullshit down your throat, and due to your brain wiring (read above, lapping up optimism and feel-good talk) you will become a follower of that guy/girl and will end up buying his/her seminar/webinar of yet another strategy in the hope of changing your fortunes.
LET ME BURST YOUR BUBBLE, IT WILL CHANGE NOTHING.
Trading profits are lumpy even when done right, and ofcourse when done wrong, it will lead to bankruptcy!!. Even if you do EVERYTHING Correctly, there will be a year that will have a steep drawdown and if your grocery bills depend on your profits, you would be eating into your capital. Ed Seykota calls it,
“A Shepard who eats his own sheep for lunch”
This brings me to the last point, the solution, and the conclusion.
Again, Ed Seykota is to the rescue, his below 01 statement sums it ALL UP for me.
Purpose of life is to find and fund your vocation and pursue it regardless of outcome.
If trading is your vocation and THIS IS what you are CUT out to do in your LIFE, by all means, stick to it and do it “PROFESSIONALLY” and IF NOT, its not too late. realize that you are in “ADDICTION”, come out of optimism and motivational bullshit, look at your PNL statement, it won’t lie, get help, get out, do what you are good at. Outsource the investing to professionals or simply buy index funds with your savings every month.
Here is a Simple maths for you.
Calculate the amount of money you have squandered since 2017. If you had put that money in an Index fund, that would have compounded at 12% CAGR, MWV (MysticWealth Value) would have compounded it at 19% and MWM (Mystic wealth momentum) would have generated 26% CAGR on that. And We are not even counting the mental agony you went thru all these years. What monetary figure do you attribute to the peace of mind?
They say, best time to plant a tree was 10 years ago, next best time is NOW. Its not late, jump now. Click on the image below.