Lessons You Can Learn from Trading
When you talk about trading, what does it really boil down to? When you take away all of the technicalities, the analyses, and so on, what are you left with? Well, the bottom line is that we make decisions.
Trading is really all about decision-making, but we do it with the thought that we want to get rich and get profits from our initial capital from brokerage and trading.
That being said, trading- whether on the stock market or on Betfair, teaches you a lot of lessons that you can implement in real-life. In this article, I will talk about those lessons that you can learn from trading.
1. It Allows You to Focus on What Truly Matters
Trading doesn’t care what model you’re going to follow. It doesn’t even care what strategies you employ. It only focuses on the results that you’re getting.
Whether you’re losing on trades or you’re winning big, that all stems from your decision-making. You could potentially just decide to bet on something without prior analysis, but you’re betting on luck to help you win; which is something that most people do not want to do.
Instead, you focus on what truly matters- winning. You do that by studying and analyzing different metrics so that your decision is based on empirical data, not just on hunches or hearsay.
2. It Teaches You That the Market Doesn’t Care
Many people believe that the market cares about who is buying or selling. But in actuality, the market really doesn’t care at all.
It doesn’t care about value nor does it care about the things that you do. Again, it all matters about the results that you’re getting.
This just teaches you that no matter how many hours you’re spending- may it be a thousand hours or just 10 hours, so long as you get results, it doesn’t really matter at all.
How you get results in real-life depends on your decision-making. And, yet again, it all boils down to if your decisions are based on something concrete.
3. It Teaches You Never to Leave Anything to Chance
Some people treat trading as some sort of a gamble. When you win big, you feel that intense high and satisfaction that you want to bet again. But, we all know that logic always trumps emotions when it comes to dealing big.
When you’re betting on something, most people leave it to chance or luck. Luck is not something concrete- it is based on something that is out of our control. Yes, you might feel lucky and win big, but then what are the odds?
Trading and earning profits from it is by taking matters on your own hands. Although there are some things you can’t really control, there are some things that you can.
You could look into different performance metrics, see different prices of shares, or even look at the different horses if you’re betting on something.
My point is, leaving everything to chance will not really get you nowhere.