I had no idea what trading was. One night i saw an infomercial on TV. People made tons of money trading stocks, party with hot chicks. They made it ez. I bet they made a ton of money. It was better than selling porn.
Trading is very hard. It’s the hardest skill to learn.
Pain is inevitable. Our struggle to avoid pain creates our own suffering. Price is random. Randomness is painful. Our struggle to tame randomness is the source of all the abstract constructs we put around price.
Fundamental, technical, quantitative, factor analyses are attempts to tame randomness. As such, they create separation between the truth of price and the inevitability of its randomness.
skill vs ego
There is constantly fight between fear and greed. A fight between survival and logic. A fight between of effort and not seeing any result. Mostly I have to deal with my own self, keep telling myself if it is ez everybody would be stock traders. Reality is not that many people are stock traders.
We purchase a stock: Stock goes down, some use logic: it’ll go up. It keeps going down & down. Our survival instinct kicks in, we get out, that’s the bottom. Next purchase: stock goes down, we get scared and get out right away, It goes up.
We purchase a stock: right away, it goes up. We sell it, it keeps going up. Now we’re kicking ourseves. greed kicks in, we purchase. It’s at the top.