“The secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge.”
– Paul Tudor Jones.
Let’s enter the Market without knowing how to trade a financial instrument. We’ll commit economic suicide, much like a person jumping into a river or ocean to commit physical suicide.
Trading is not only risky, but it’s also dangerous. If you’re unaware of its psychological effects on the human mind, you can destroy yourself emotionally and physically.
If not appropriately understood, the addiction to random rewards in trading becomes a gambling habit. The trader starts having fun in her profession and losses significantly.
She blames her luck and the apathetic nature of the Market. She becomes jealous of consistently successful traders. Instead of learning, she starts hating them. She criticizes her ability to trade and loses interest in living life.
She doesn’t understand the real problem. The Market is not responsible for her losses. It works well and is fair in its functioning. It’s her psyche that is causing her loss.
As a euphoric amateur, she’s gambling, not trading. If it were simple buy and sell, everyone would’ve been doing nothing except trading.