The Rat Race of Trading
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The Rat Race of Trading
There are plenty of books and materials in the market that teach people how to escape the rat race. Basically, a rat race means a consistent reliance on a salary via employment to cater to a person's debts and liabilities. In order to escape a rat race, we need to build assets that help to provide sources of income and reduce our liabilities. This framework of rat race is very much applicable to trading as well. In fact, most traders got trapped into it without even knowing.
The Rat Race of Trading - Starting of a Race
One of the very first investment tools that most of us got associated with is stocks. It is easy to understand and entry barrier is relatively low. For someone totally new to it, somehow at certain stage of our life, we bound to come across it. Whether it's an introduction from friends (who are excited about sharing their latest tips) or from the news and papers which rave about the euphoria of the current stock market. This is where it all started. Every Tom Dick and Harry were making money, and we wanted to be one of them. We got ourselves a broker, and entered the market. We made some money and re-invested MORE into the market.
The Rat Race of Trading - The Rat Bites Back
If you are savvy enough, you would have realised the key word here is "Euphoria". It never lasted long. When everyone on the street are making money, that is an indicator by itself. You don't even need a chart. Alas, the market bites and everyone bled big time. That's when the blaming game got started. We would blame our friends for the wrong tips, the broker for not warning us, the chart for being inaccurate, and blah blah blah. And you are right, we never blame ourselves for the lack of education, we never blame ourselves for not opening our eyes and never apply basic common sense to how we trade. Money never falls from the sky.
The Rat Race of Trading - And It Bites Yet Again!
It was time to stop and rest. In a typical trading rat race, traders and investors will recuperate by stepping aside of the market, and obediently work hard at job to save and raise trading capital again. Little did they realise, this is the time where the market is staging a reversal to get ready for another uptrend movement. By the time they had raised enough, the market had already rallied for a while and enough to get people talking about it again. Friends and colleagues started to share their success stories again and brokers sent news that market is making new high. The Bull is simply unstoppable! We tell ourselves, we will not make the same mistake again. Now, did we not plunge in again? Until we start to educate ourselves and make our own judgements (and improve on them subsequently), we are trapped in this rat race of trading, and intriguingly, many people went through the cycle again and again without even realising the need to escape.
Right below this article you are going find a link to discover more about how to get out of the rat race of trading and learn trading the correct way
Article Source: Articlelogy.com
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