What It Takes To Be A Winner.
It’s often misunderstood that to become a professional in the financial markets or to even achieve what is considered ‘success’ you must possess all kinds of witchcraft and wizardry towards understanding chart patterns, serious in-depth expertise on all forms of technological algorithms/fundamentals & be up to date with every single ticker and update Bloomberg news provide frequently. But yet, in reality you could possess all of those capabilities and more, yet still be a completely unprofitable and disaster of an investor/trader. It’s easy to understand this when you realise over time your skillset & knowledge of the basics are heavily aligned with those of market ‘experts’ - Such as candlestick recognition, basic trendline understanding and maybe the occasional indicator usage. Whilst knowing the basics help, it will never bring you continuous success over the long term as it takes years (or months with the correct guidance) to truly adapt to the ever changing dynamics of the market and identifying when and where trends begin to change and it’s only then you begin to find patterns and setups that are unique to your trained eyes only, which is surreal when you take a step back to consider we all stare at the same charts and price tickers, yet the 1% of successful traders see the complete opposite that the majority naturally do.
Want to know what’s crazy? None of that even matters. Years of experience can definitely give you an edge in terms of strategy and longevity in the markets, but it doesn’t mean a thing if the one tool you’ve possessed since birth is dysfunctional and not tamed - Yes, I’m talking about your brain and more importantly its influence on your decision making.
Psychology is the key topic of this article and I’m writing this to paint a clear picture of no matter what you think you know or do, your ability to handle your emotions around the clock in all categories of situations is an art form that must be praised, as many will never be able to achieve such a level of mind over matter. Not because life is unfair or because we’re born at a disadvantage over intelligent people, it’s due to the fact most of humanity never set out to explore the capabilities of the brain and what even the lowest-level of consciousness can aid with achieving anything possibly worth attaining in life.
When you look at the current market conditions, it’s a no brainer to predict many people have exited the market, taken what’s left of their money and fled back to the safety of a savings account for arguably the remainder of their lives. Are they stupid? Can we blame them? Absolutely not, in fact, they’re as normal as can be and are behaving exactly as we humans have been genetically programmed to behave. The brain almost has a built-in self defence mechanism, wired to make you question and alert to anything considerably rendered a ‘danger’, this can be said for both a scenario where a gun may be present in your surroundings or your trade being negative 80% and nearing liquidation. The body has a rapid response and it very frequently sets off false alarms on what is truly considered a threat or a risk, again it differs from person to person but a majority of the time what it’s telling you is a ‘threat’ is only because you’ve let yourself believe it is a threat.
Within the markets, whether that’s Stocks, Forex, Crypto or Commodities: Money is on the line, money we as people have had to slave for or wait extended periods of time to receive. This naturally builds a perception in our heads that money is something we must latch onto till death do us apart which may be the toxic and detrimental factor to your success possible. Extended time in the markets and experiencing this incredible bear market of 2018 is a genuine life changer and blessing for those who blindly ran into the markets investing at all-time highs or with more money than they can afford to lose. Why would this be a blessing you may ask? Because the strongest hurdle in overcoming psychological demons is the pain and suffering of financial loss, something that once suffered for the first time, completely eliminates the average person from putting themselves in a situation to ever experience such pain again. As covered above, this is perfectly and naturally normal, but unfortunately in a world where only certain individuals make it to the land of ‘financial freedom’ or achieve something worthy of a legacy, it comes as no surprise there is a 1%, after all, the 99% never make it past the first hurdle and achieve detachment from monetary entrapment.
The bear trend of this year may be horrific if you’re new to the market, but I’m extremely glad it’s happened because many people have found a newly (un)discovered strength of holding onto their investments despite the drastic drop in valuations across the board. Subliminally, for those who have held on to this present day, they have attained over the past few months financial losses most people will never experience in their entire lives and I’m a big believer in the harder & faster the fall, the stronger you grow and become resilient to future losses. The fear of monetary loss, once mastered and viewed as nothing but an ‘expense’ of your decision making, possesses you with powers unachievable to the average person - Rational decision making, crystal clear thought processes & the ability to identify what went wrong and how to learn from it, without indulging in regret and unproductive sulking over the situation.
Psychology really is the building block of everything you perceive as achievable in life. Whether it’s a job you desire or a long-term financial goal you wish to attain, obliterating the obstacles that are fabricated by your own mind open up a whole new world to what’s possible and how quickly you can achieve it. Take a simple look back at anything or anybody who is remarkably successful or iconic in the modern-day world and think about how all of it was built and derived from originally. Even if you want to use the excuse of somebody being born into wealth, take a step back and think about that wealth originally and how it came to light, the current generation may have had money but the generation before would have started from absolutely nothing. Skyscrapers started from nothing but a piece of paper and an idea spoken verbally. Once you’ve absorbed this take a step back and identify the current state of the cryptocurrency market; Have financial crashes occurred before? Have earthquakes appeared more than once? Wasn’t there TWO world wars?
The answer to all of these is a big fat YES.
Every single devastation in the world or financially whether to yourself or another individual has eventually been recovered and progressed to a higher & stronger level than prior.
I’ll leave you on a thoughtful note:
If you were to lose $5,000 right now at this very moment, are you telling me you will never make that much money again for the remainder of your entire life? Exactly. Take those losses like a champ and excel to the next level. The only thing standing between you and your goals, is how you view the possibility of getting there.