Where Trading Leads
Today I was in the dealing room of a brokerage company. While I was talking to the manager, he came up to us Trader. He looked like he was in his 40s, a serious gray-haired man. We got to talking to him and he started complaining about his regular broker (not the company we were in) and talking about his failures.
I can afford the loss.
During the conversation with him it turned out that he had been trading for several years and had tried to work with different sums, and, as it turned out, the more money he deposited, the more he ended up losing. This trader has not connected all his failures with his broker or the market, but only with himself. Here is his quote: "For a while I even tried to keep a diary, but it was of no use, I was convinced once again that All my mistakes are my own fault. I was misjudging when to close a trade because I was nervous, fidgety, or unsure. No matter how many books or current analytics I read, it didn't help me, or rather I could win, but in the end I would still lose on another deal I was less prepared for. Closer to the end of the conversation the manager and I asked him why he continued to gamble. The trader replied: "I am a bit of a gambler, my small winnings bring me joy, and I can afford to lose, as I work in a good firm and have a decent income. In addition, I started to gamble on cent accounts, thereby reducing the risks and profits, but without losing interest in trading.
For this man, market battles have become a kind of harmless hobbyIn the evening, he sits in front of his computer at home without much stress, and even it seems that he does not feel stressed and strong feelings when trading, he himself says that he makes mistakes, so he almost does not get any profit from his trades. Here is an example of an ordinary middle-aged trader, without fanaticism, working on e, and there are millions of such traders in companies. This "typical" type of trader brings his broker about 100-200$ per monthThe trader realized that the problem of successful trading is, after all, a problem of psychology, but because he didn't want to understand himself and didn't need money, he preferred to just play with the principles. Over several years of work the trader has realized that the problem of successful trading is still the problem of psychology, but since he did not want to understand himself and did not need money, he preferred just to play by the principle "will he or she be lucky", operating with minimum means and enjoying the process.
From Losses to Victories
Another real example of a trader. The man also began to play on the e, being wealthy, having an apartment, a car and a country house. Unlike the first trader, this one had a serious passion for the market. The losses started to hurt his ego and instead of stopping losing trades, stopping and thinking, he was losing more and more. Eventually, he too came to the conclusion that the reason for his failures is some kind of psychological problemsBut how to solve them, no matter how hard he tried, he did not understand. The man changed jobs, and then lost it, sold first his country house, then his car and even the apartment where he lived, of course investing all the money in trade. As he told himself, it was only after the loss of absolutely everythingThe story has a good ending, the trader was able to overcome his psychological barriers and began to trade successfully, and he was able to get back everything he had lost, and he wrote a book about it. This story has a good ending, the trader was able to overcome his psychological barriers, began to trade successfully and managed to return everything he had lost, moreover, he wrote a book about it.
I am not urging anyone to repeat this path, because there is very little chance of it succeeding as well. My purpose was to draw your attention to how much There can be great psychological problems in the work on the market.
Couldn't handle the market
And finally, the last example I read from a book on the psychology of the stock market by David Cohan. A certain Mark Barton, who had received insurance after the death of his first wife, decided to invest in trading on the foreign exchange market and took up day trading. However, his business was so bad that he was constantly losing. As a result, this man killed his second wife and two children from his second marriage, and then broke into the Atlanta Stock Exchange building and killed nine employees of the brokerage firms. All nine of the murdered employees worked at firms specializing in day trading. A few hours after the event, he shot himself.
Why am I writing about this? Because, in my opinion, this story illustrates in the best possible way where internal conflicts related to finances can lead an ordinary person. When you see warnings and risks on the websites of your brokers, please think about it, it is not an empty formality.
Of course, working in the market can make your life better and more interesting, but with the same probability you can get a lot of psychological problems, not to mention problems with funds. If you have chosen the "trader's way" for yourself, then either treat it philosophically like the trader I met this morning, or be prepared to work long and painstakingly on yourself.