GET YOUR HANDS ON THE F***ING KEYBOARD AND TRADE YOU W**P!
Sorry! I really didn’t mean what you read up there. That was my alter-ego gabbling for a moment.
I’ve come across several people in my 2 decades plus so far. One thing I noticed is that people have different approaches to risk. While some are adventurous, the others are quite risk-averse and wouldn’t mind taking the least interest from a possible profit, as long as they don’t get too much exposure to risk. But you know how they say it – go big or go home! (or not quite?)
In simple terms, risk is the possibility of suffering a loss. It is acknowledging the tendency that things can go wrong, irrespective of your expectations.
Life itself is filled with risk. Walking on the road is risky – you could get hit. Driving is risky – you could knock someone down. Getting married is risky – you might end up unhappy. Having children is risky – you might struggle to take care of them if disaster hits. Getting rich is risky – you may become afraid of losing it all. Staying broke is risky – countless opportunities will pass you by. Working a job is risky – you could get fired. Starting a business is risky – it may fail.
Like every other endeavor, risk applies to participating in the financial markets. While risk may vary in degrees, no life activity guarantees that things will turn out the way you want. The reason is simple; no one can accurately predict the next minute. And this is the very factor that makes life interesting and adventurous.
One thing that makes the difference with financial risk is that it produces monetary loss – and like we know, humans are overly triggered (emotionally) by monetary loss. This makes a lot of people scared of financial markets.
However, the truth remains that there is barely any activity in the world that presents more opportunities as frequently (note the word “frequently”) as the financial markets. Opportunities are there for everyone to make both good and bad decisions.
As a trader, you need to make up for the time you spend in the markets by focusing on profitability. There are a couple of analysts who do it for recognition other than profitability. They prefer to be heard, getting congratulated on every market call they made that turned out right. They love to be in the news and not in the battlefront.
This begs one question though – what kind of a trader (in your field) are you? Are you worried about recognition or being profitable?
Get on the wheels and drive!
Miracle Nwokwu
Bitville
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