Trading And Life

May 12, 2021

It was November 2020 when I became a crypto trader and trading is just the same as living our lives in the real world, it is always risky and challenging. We can think of trading as our life's journey, the road is sometimes bumpy, we sometimes go straight, and sometimes we go sideways, and even go to the south. But if we have that fortitude to continue the journey, or practice in trading, or face difficulties, we can become truly exceptional in every trade and trip we take.

What do traders do?

Traders buy and sell assets to make a profit. In spot trading, we buy assets at a low price and sell them at a higher price. In leverage trading, we speculate on the price of an asset and can make a profit from both bear and bull markets.

Every trade carries risk, no matter what instrument or strategy being used or who's trading it, whether a noob or a professional, risk management is extremely important.

We are risk-takers

To be a trader, you should have the confidence to enter a volatile market. You shouldn't have fear, doubt, abrupt decision, because those factors will only lead you to greediness, stubbornness, and making irrational decisions. Taking and accepting the risk is part of a trader's journey, it is unavoidable. No matter what cautious you take or the technique you apply, risks can pop out at any second unexpectedly.

Just like in real life, we experience risks because they are everywhere. Whether we are crossing the road, or driving our car, walking on the streets, and taking the next trade, risks have been part of our life already. It is just a matter of accepting uncertainties and having the fortitude to work on how to maximize the risk and reward balance. And we can't deny the fact that the world progress because of the risk-takers.

We are bypassers

There will be times that the market suffers from extreme volatility and it usually happens after the bear or bull market. Not all trades are profitable most especially if the strategy breakdown because of the sudden market shift. But to be a successful trader, you need to maintain your strategy and bypass your greed to protect your profits.

Some situations in life need to bypass as well, just like those having heart system failures. A successful operation means a life extension, but the unsuccessful one leads to death.

In our journey, we can also meet obstacles in our way that we need to bypass. If we don't maintain the perseverance in us, and we don't maintain the pace, we might follow the wrong direction.

We are opportunity chasers

We are as inevitable as the bull and bear. If the market goes red, we take a deep dive with it following the downward swipe of the bear's paws. Meanwhile, when the market goes green, we accelerate our speed as much as possible to chase a running bull along with the opportunity once it thrust its horns upwards.

Just like in real life, opportunities are everywhere. But sometimes we can't notice them as we are looking at something else. We should not miss a boat rather grab every pebble and stone on our way. Those who chase opportunities succeed, and those who missed the boat face failures.

Trends go up and down just like our life's journey. It's like riding on a roller coaster, those who don't enjoy the ride will throw up, but those who will raise their hands and shout on the mountain top will end the ride with a smiling face and incredible journey.

We are goal seekers

Just like anybody else, traders are goal seekers as well. The main goal of a trader is to seek a successful strategy to generate more profits, to be on the right side of the trend, and to maintain successful trades.

On trading, the first goal is to look for a better entry that can be expected to deliver a positive return, but when the market goes to the south, another goal is to look for a proper exit.

In life, we set goals for a longer vision and give ourselves the motivation to continue our journey in life. It helps us to organize our time and resources to make the most of our life. We set goals to become a successful person, we set goals to have a better life, we set goals to pursue our passions, we set goals to achieve a better version of ourselves.

The temptation to tweak our goals and strategy is always present that can lead us in danger or to a poorer strategy, and just hoping and praying for profits or a successful journey. It is tough to maintain a positive pace or to follow a strategy, especially when something happens that we miss out on a bigger opportunity.

But if we are seeking long-term trades, then we need to hold on to minor fluctuations and just trade the bigger ones. And if the market suffers from an extreme downtrend, what we have to do is to HODL on tightly. Just like in our journey in life, ignore the bumps, and humps, and just enjoy the roller coaster ride 😉.

Lead image from https://www.jagoinvestor.com/2009/05/profile-of-day-trader.html