Money Talks Weekly # 9
This is my weekly learnings to our email subscribers, same will be shared in our website and linked in. Please do share if you think it benefits your dear ones.
We do a weekly call time where any one can call our office number, I personally attend to the call. People can any question related to money management. It is a learning experience for me, trust our audience is getting value out of it.
One of the calls was, a trader who was in to trading from quiet sometime. Who was able to generate profit and couple of months back, he has incurred a loss. To cover up that loss, he has traded aggressively and ended up in loss of capital. He want to come back to profitable trade. He is following the market and trade everyday to make it in to profit. I have requested him to stop trade and invest for long time. Also, asked him to learn trading on paper. Start to trade only with small money and with a proper risk management.
Its not about my solution, my solution is not full answer. There is more to it. But his problem is not the knowledge to trade. His issue is emotional hurt of loss from the market. I have read about a Buddhism concept – Second Arrow !
“In life, we can’t always control the first arrow. However, the second arrow is our reaction to the first. The second arrow is optional.”
In life any accident, we cant control. Your reaction post that accident is critical. If you carry the accident in mind all the time and be fearful to drive again means it is the problem. Or any time, you loss in an interview and not applying for job again, it is hurting your carrier. Or your childhood fear of talking to strangers is a dangerous fear for people to go on for socializing.
Loss in a trade is a reality. But recovering loss from next trade or one trade may not be a possible solution. Loss in that trade was first arrow and aggressive trade was second arrow.
Same problem, we are seeing regularly. People invested in market and made loss. They believe for life long that market is risky and don’t want to invest in market again.
There will be a problem on a regular basis, but this won’t happen all the time. If any loss or failure in your life, always see that as an experience and that’s your first arrow. That’s was an event, let’s not carry ! let’s not allow second arrow of suffering with that event to come in. If you are not able to stop second arrow, get in touch with an experienced person or expert in that area.