As stated in the previous post, I have a few days of down time before I jump back into trading. I thought this would be a good time to reflect on my long term goals. The goal when it comes to trading is straight forward: make money. Everyone may have different motivations for making money but at the end of the day, we all have two goals in trading:
1. Make Money
2. Don't Lose Money
I enjoy making money. Now that may seems like an obvious statement. Who doesn't enjoy making money. However, I found that most people in the world do not like making money. Everyone likes to spend money, not many people like to make money. The difference is huge. Most people like having money because they like to spend money, but if they had a choice of making money or winning the lottery, they would go with the latter. I genuinely enjoy making money. Up to this point, I have no withdrawn any money from my brokerage account. I just want to watch the numbers go up up up. I do not speak of stock prices in dollars but in points. That's what the stock game is to me, a game with points for success.
I have noticed that I perform the worst when I concern myself with the monetary aspect of trading. Greed clouds judgement and influences irrational behavior. The stock market is not as complicated as most people believe but chasing money causes mistakes. Traders have strategies that work but lose big on a single trade because they went heavy whilst thinking "I'll hit the jackpot if I win this one." Traders but positions too quickly because the position is in the red when the chart shows that the trade is still in play.
It is quite ironic that to be successful in a game where money is the sole goal, one must not think about money. On a wall on my trading room I have posted, "Be ambitious not greedy. Ambition fuels motivation, greed clouds judgement." Don't grab too many peanuts or your hand will get stuck in the jar.
-Still Broke
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