Throughout the early parts of our lives, almost everything had a clear result attached to it. In school, we wrote our term paper because that was the assignment. At home, we made our beds and cleaned our room because our parents told us to and gave us an allowance. We were told what school to go to, what classes to take and when to eat lunch.
There was no uncertainty to it. We just acted.
But a lot of our adult real life doesn’t work this way.
We decide on a college, a career, a company, or to start our own thing…nobody is there to tell us what to do.
When we date or get married, nobody tells us who to date or if it will really make us happy for a long time.
There is no way of knowing for certain if what we are doing is right or not.
So, many people avoid these decisions as much as possible. They choose to say no to a blind date. No to getting married. No to changing jobs. No to moving to a new city. No to traveling outside the country.
We avoid acting because it is so hard to act without knowing. Thus, our lives can become incredibly repetitive and safe.
Trading opens up all kinds of uncertainty. What do I trade? When? How long do I hold this stock? When do I sell? Holy crap, every single week is different.
There is literally no certainty at all of any individual outcome of any trade or any month. This is scary as hell to many people.
Others thrive on uncertainty. The chance to make life changing money. The freedom of it all.
There is no set schedule. We don’t have to trade every day or week. We can sit.
There are NO RULES. This is insanity to some and the ultimate freedom to others (hand raised).
The hot sector rotation from retail to tech to biotech to energy. We love trying to figure it all out. We crave the hunt…not knowing when the payoff will come…just having an educated faith that it will pay off.
Sometimes the best trade is chasing a stock that is running. Other times it is buying something that is way down and catching a great rebound.
Trading is a bit chaotic . Even the best traders are wrong half the time. It is a very humbling career, hobby, or passion. The best traders have big wins to cover the many inevitable losers.
Just remember, a certain amount of uncertainty and chaos is healthy (trading or otherwise). It stimulates growth and can be very exciting and financially rewarding.