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Discussion in 'Beginner's Lounge' started by Skate, Dec 17, 2018.

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  1. Skate

    Skate

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    Exercise in psychology

    Many people make the mistake of thinking that what move the market are financial statements, economic reports, and news. Those things may all have some impact, but ultimately the market is primarily an exercise in psychology.

    Skate.
     
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  2. Skate

    Skate

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    Profiting from the stock market

    Profiting from the stock market is exceedingly difficult to do consistently over a long period of time because the market is irrational and emotional. It moves in a manner that has little appreciation for what we might think is reasonable.

    Skate.
     
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  3. Skate

    Skate

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    Human Emotion is the driving force

    A single human emotion is primarily responsible for the course of the market. That emotion is fear. We either fear that we will lose money, or we fear that we will not make enough.

    Skate.
     
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  4. Skate

    Skate

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    FOMO
    We have all read about FOMO - the Fear Of Missing Out..

    Another Fear most don't consider
    Don’t underestimate the fear of not making enough money. It manifests itself differently than the fear of losing money, but it’s a potent force that does not evaporate quickly. Fear is always the primary driving force in the stock market. But like all human emotions, it can rise to extreme levels and then suddenly shift. That is why we must always be ready to move quickly.

    Skate.
     
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  5. Skate

    Skate

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    Punching bag

    It can feel like you are a punching bag but that’s the nature of the trading game. Even after you learnt how to trade successfully, you will still take your hits.

    Skate.
     
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  6. Skate

    Skate

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    Learning curve

    Very few people succeed in this process as the learning curve is too steep and the correct psychology is too hard to implement. If you have any attachment to making money, and who doesn’t, it is very tough to trade successfully and correctly.

    Skate.
     
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  7. Skate

    Skate

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    I’ll let you into a little secret.

    Everything we do to secure our financial future involves money

    Skate.
     
  8. Skate

    Skate

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    It's taken 68 posts to make a Disclaimer

    I want to be up front and let you know my dump thread is about money.

    I also want to highlight a few things:

    1. Opinions are like ar$eholes, everyone has one and some smell worse than others
    2. Not all advice is helpful to your situation
    3. Others do the best for themselves and not what’s in your best interest
    4. Decent Parents will always do the best for their children and they want their children to have a better life than they had.
    5. Our education system needs a shake up - financial education at school should be a given.

    Skate.
     
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  9. Skate

    Skate

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    Communal spirit

    We are communal animals and we need a communal spirit but what should be foremost in our mind is to do what’s best for our family, we need to constantly push to secure our financial freedom, we need to think about it all the time and doing so will make it happen, but first we need a plan to force our wealth creation into the right direction thus assuring success. Your plan and your decision will shape the outcome.

    Education is up to you and education is you’re first step in making wealth creation happen.

    Skate.
     
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  10. Skate

    Skate

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    2 Handy hints

    1. What decisions you make – shapes your future

    2. What you think and how you think makes a difference.

    Skate.
     
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  11. Skate

    Skate

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    WII-FM - it sounds like a FM radio station

    WII-FM
    is an acronym for “What’s in it for me” (WII-FM)

    Every decision we make are normally base on this one premise (WII-FM)

    So is it bad to make decisions using the WII-FM Strategy?

    Nope - its human nature to do the very best for yourself and it’s even better if it can pass the 3 rules I use to make all my decisions:

    1. Is it right or wrong
    2. How does it affect someone else
    3. What’s the worst case scenario and can I accept it

    Ask & answer these three little questions & you'll be on your way to make a half decent decision.

    Skate.
     
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  12. Skate

    Skate

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    Personal structure

    I know a little bit about human nature, people are just like water and as water tracks the easiest path so do people, they always take the easiest path, personal structure is something that is lacking in most people today, they want everything and I mean everything handed to them.

    Skate.
     
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  13. Skate

    Skate

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    With the passing of time we forget to plan for a rainy day

    Everyone needs to plan for a rainy day, most don’t. You are the only one who decides whether you are on the poverty line or not. If you want to achieve financial security you have to make it happen as it’s not going to fall into your lap.

    Skate.
     
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  14. Skate

    Skate

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    I'm starting to drift away from trading.

    Everyone wants to be better off, most don’t know how to make it happen or if they do they are too lazy to do it. The others are just plain stupid and selfish living for today and not setting up their future or more importantly not setting up their family’s future.

    Skate.
     
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  15. Skate

    Skate

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    Want to be well off?

    If you want to be fat, think about food all the time, if you want to be fit, think about exercising all the time, and if you want to be in a better financial position, think about saving & investing money all the time. Take it from me, if you think about something constantly it will happen but only if you are committed.

    Skate.
     
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  16. Skate

    Skate

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    What about DEBT, that must be bad.

    Not all debt is bad, some debt is even beneficial. Let me explain what good debt is and what bad debt as I explained in another thread.

    1. Good debt appreciates in value.
    2. Bad debt depreciates in value.

    A simple example of good debt – buying a home, or making home improvements, they both add to the value of your asset, your asset appreciates in value.

    A simple example of bad debt – buying a car, we all know the value of a car depreciates thus losing the value of the asset and over time it devalues to junk status.

    Skate.
     
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  17. Skate

    Skate

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    The simple equation for debt in a nutshell

    1. If you buy an asset and over time it increases in value – it’s a good debt.
    2. If you buy an asset and over time it decreases in value – it’s a bad debt.

    Skate
     
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  18. Skate

    Skate

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    Failing to plan

    People spend more time researching a car purchase then they spend setting up their future, most don’t even research how they can grow their wealth for financial freedom.

    Today most people don’t plan anything, they just let one day roll into the next, meaning their life is the same as yesterday and tomorrow will be the same as today, that’s if nothing unexpected happens.

    If the unexpected happens, this is when the $hit will hit the fan.

    Skate.
     
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  19. Skate

    Skate

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    My views

    My dumps are written to pass on my views keeping them as generic as possible. I'm sharing the experience I’ve gained over the years showing that there is an alternative view or a different way of thinking about issues that may be beneficial to you.

    Skate.
     
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  20. Skate

    Skate

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    What is life all about?

    Life is like playing pool, it not about sinking the ball, but lining up the next shot.

    Skate.
     
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