I see so many gurus teach this holy grail crap. "You need to have a system set up and you must stick to it and blah blah blah" and so the noobs learn this and go out and use their 'stock scanner' for the best possible position that matches their "holy grail" and jump in with the intention of instantly becoming a millionaire with no knowledge whatsoever about the stock they are putting their money into. This to me is gambling, even if you are successful doing it. Which there is absolutely nothing wrong with, and more power to you for being a successful gambler. And this kind of trading can be more fun and adventurous since there is so much excitement and dissapointment that comes along with it. But in my experience this kind of trading messes with your emotions 20x more than investing in a stock you believe in. And I think that if more noobs actually knew the kind of trading they are putting themselves into and the kind of mental state they will be in with this kind of trading then maybe they would trade differently or not trade at all. But these gurus feed of of them making mistakes because it's just more money in the bank for them. So if you are having trouble trading and riding an emotional rollercoaster that you want to end, get off. Find a stock that you believe in and trade it. Stop being a gambler, and become an investor that wants to be a part of a growing company. Forget all the hype of being a millionaire, and this fake lifestyle crap that so many gurus flaunt. I don't know, I'm having a good coffee buzz this morning and wanted to share 2 cents
Few days ago, spoke with one guy, about investing, swings, extra income that im making (The profits from trading should overcome the salary in a year or two) Long story short, man got hooked by the idea. Repeated him clearly , few times : before you start with the real money, study this craft at least for 2 years. ...Friday, received a message, about him having ,,few great ideas'', with small/micro caps/pink sheets. Tried to warn him again, but man replied something like : don't worry - i know what im doing. Aaaaand - guy went in with all of his savings. My reaction literally was : Just made him a big dis-service ; got to work on this one then, to avoiding ,,preaching'' about potential financial freedom, if there's any suspicion, that im dealing with a fool.
Gambling no real way to win in the long term other than a low odds huge win ofcourse which is just a carrot the dangle very few win that ofcourse. Trading is a skill that can be mastered, very easy aswell until greed and fear mess it up and make you do stupid trades. Gambling with style!
However you want to trade it. Maybe the stock is rallying but you want to day trade it, or maybe you want to go long and short the tops, whatever your strategy is as long as you are comfortable throwing your money into it. Sounds like he lost his mind thinking about financial freedom. Some people are so blinded by the money they can't see what's in front of them. There was probably nothing you could have done to change his mind.
There's always hope, I used to fall into that category. With a different approach and different mindset anything is possible
Yes exactly what happened, given the fact that he mentioned about having ideas about ,,investing'', although, his view was very distorted and more related to having a small business. Yeah, the train has left. I had my lesson and for him - it's to receive one. (smiles...)
I used the markets to gamble. hunches and excitement were my motivators. It was fun until it wasn't...just a great way to end up selling handies in truck stop bathrooms. But im back now...with superior grip strength and the desire to learn.
I've often said that "trading is not gambling". I need to qualify that... Trading is NOT gambling once you're prepared and "know what you're doing".... you can put trading odds HEAVILY in your favor by what you know and how you behave! But if you put your money at risk before you're ready (not just think/hope you're ready), then trading is effectively like gambling.