Contrary to what you are used to from me, this post will not cover the financial indices’ price action, but is instead inspired by questions I received from a premium member, and by some tweets of two great traders/investors/advisers I follow on Twitter: Larry Tentarelli (@LMT978, https://trendtradingsignals.com/) and Steve Burns (@SJosephBurns, http://www.newtraderu.com/). I can highly recommend following them.
The below is my expanded upon reply to my premium member’s questions. Polished, improved, fact-checked, spell-checked, etc. I hope you find it inspirational, motivational and thought-provoking.
“Here’s a little anecdote: Before misunderstanding my story, please always treat the market as your friend, but who’s kind of hard to figure out and to understand. It can do things that make us scratch our heads but it’s still our friend. That mindset will allow us to trade better: it’s a positive mindset. It has to be positive because how else are we going to make/extract money from a system if we dislike it?
That said, every day it is all-out-war in the financial markets. This may sound like a complete contradiction to the first paragraph, but it’s not. It’s simple how the market operates: you are up against the smartest people, many with a PhD (me included), super-fast computers, high frequency trading, people with 50+ yrs of experience, large institutions with 100s of traders, etc. All want to win each day. But not everybody can win, for each winner there is a loser. This means each day we always have to be 100% focused, ready, and prepared. Do your homework, sleep well, de-stress, de-clutter, be mentally stable, have a proven system, etc.
I like to compare it to as stepping into the ring to fight Mike Tyson. We can only even dare to do that when we have practiced A LOT, and only a great coach and trainer behind us can help us with that. But, the coach/trainer always costs money. Your trainer understands your opponent, has many years of experience, knows Mike’s left hook, his moves, his strengths, his weaknesses, etc. All this knowledge is necessary to survive the fight. Question now is: How much are you willing to pay that coach/trainer to ensure you get out of that ring at least still half alive? How much is it all worth to you?
Many think they can step into the ring and fight Mike all by themselves. They don’t want to pay anybody anything. Guess what, many will lose. Only a very few, those lucky enough to be like say Hulk Hogan, will survive and maybe even win. But, even Hogan has a personal trainer/coach. And best of all, also Mike has a personal trainer/coach… Why? Because nobody enters a ring unprepared. Ever. And those who do so any way, are naive, disillusion, full of themselves, and simple fools. Most of them will thus barely survive round one.
But, those that are smart, humble, and open-minded will hire a great coach/trainer and be able to outsmart their opponent and maybe even win on a technical KO. By hiring a trainer, aka financial adviser/forecaster, you will clearly belong to that group; the winners. Some even hire several. Because paying a few hundred bucks a year to make thousands or many many more with greater certainty, less risk, and more understanding of the financial markets, is the best investment you can ever make. Paying nothing gets you nothing. This is also know as “you get what you pay for: you pay nothing you get noting“, which in turn boils down to “It costs money to make money.”
Hence, next time you want to step in the ring to fight Mike, you can smile as you know I have your back and have properly trained and informed you to the best of my knowledge. Those too cheap to hire an adviser are on their own. Some will survive, many will not.”