What the various financial markets provides is the opportunity to generate income in ways that most can’t fathom. We hear the potential growth in wealth building by buying and selling financial instruments, such as stocks, bonds, currencies, commodities, etc.
The financial pages describes countless stories about the riches to be realized. Incredibly successful traders, portfolio managers, and investors who have made a name for themselves. What’s rarely discussed is the personal development and the discipline that’s required.
Trading and investing, like any other worthwhile pursuit, provides more rewards than just the accomplishment itself. To paraphrase the saying, “The destination is not as important as the path that’s taken, along with the things learned along the way.”
While it remains true that the expansion of one’s portfolio is the ultimate goal, what will ultimately indicate success or failure in the markets, is the path on how those gains were achieved.
They can provide additional opportunities towards learning important lessons about themselves, their life, and the markets. These lessons reaching across all facets.
Playing To Our Strengths
We all know our personal strengths along with weaknesses, a set structure in which we operate, this based on the demands on our time, experience, education, and a variety of other factors.
In the financial markets, we need to assess these qualities to help us in deciding what or how to trade, the time frame to operate, how to make our investing and trading decisions. The reason being it’s unlikely that we’ll achieve our objectives if we don’t honestly judge ourselves, and know how we can operate the best.
For instance, some will be poor day traders, as they can’t dedicate their day glued to watching the markets, making frequent buy and sell decisions. Most also can’t handle the stress associated, or have the discipline to fit the demands.
To Adjust One’s Life
It’s the same when it comes to life. We’re constantly adjusting our personal inventory and our life situations. These events dictate what we’re able to do and how we can do it.
That being said, these aren’t static changes. As mentioned, most just can’t alter their schedule or life to allow for day trading, but they can change certain variables to expand their options.
Education is part of that equation. So to is seeking new experiences, meeting new people, and consciously adjusting our attitudes towards different things. If a goal becomes important enough, there are things we can do to make them possible.
The biggest part is knowing what we have to work with, what we want, and how to apply them most efficiently. The other part is investigating, inviting, and opening up new avenues.
Choosing Who We Listen To
In the markets, there is a vast amount of information available. It comes in a variety of forms, from fundamental data released by the government, to commentary by analysts online.
Some of this information can be useful, most not. The information that’s provided before a major stock collapse, for instance, creates a number of conflicts of interests provided by these so called “experts”.
These gurus didn’t have the true interests of those who they gave advice to regarding a certain stock, but rather just to feed the interest of themselves or their firm. Most listen to these pundits only to their own detriment.
So the most important thing when it comes to successful trading is knowing what information is of value, what can be trusted, and what should be taken with caution.
Trading Is A Reflection Of Life
The same holds true in every other area of our lives. We’re constantly being provided information and advice, true or not. Some are solicited, the majority are not.
Before we decide whether we can make any use of it, we need to assess the veracity of the source. Some are trustworthy and wise, that we’re able to depend on what they say.
Others don’t have our best interests in mind. We need to carefully consider what they say along with the motivation behind it, this before deciding whether it’s worthwhile, or if it should be ignored altogether.
Having the ability to be able to effectively judge the input that we receive from sources such as our friends, family, experts, and peers becomes a priceless skill.
Being As Disciplined As Possible
Success in the markets can be achieved by we knowing the right thing to do. The single biggest reason why the majority fail to reach the returns that they seek, they fail to be disciplined.
Sounds familiar for most as it’s the same with anything else in life. You’re wanting to lose weight, so you want to be disciplined about what you eat and exercise. You need to have a plan and stick with it.
Expecting Failure In Order To Succeed
Perhaps the greatest thing about constantly trading or investing meaningfully, is that doing so provides an opportunity to see what works or doesn’t work. You need to fail before you can succeed.
The conscientious trader should have a strict plan, a system to trade and evaluate. Whether things fall into plan and profits accrue, or they don’t. What’s learned is knowing what needs to be corrected next time.
Achievement in life means regardless of the objective or pursuit, we need to understand what it takes to succeed, and then have the capacity to judge whether we’re doing the right thing or not. Otherwise, we’ll act randomly.
Our life lessons are related to how we trade. These lessons also need not come at great expense, this since modern trading and investing can now be done with lower risk and smaller capital. These all more reasons to make trading the markets a source of financial growth.