Nobody likes to lose.
And when it comes to stocks trading, if the price of the stock direction and our entered position move in the same way, we experience that thrill of being correct.
This is the feeling of winning.
So what happens is, most people started trying to predict the next stock movement and entered into positions based on their prediction, gut feel or whatever you call it.
And this is the point that differentiates a stock trader from a gambler.
I have friends who like to ask me – what’s going to happen to the stock price next? Will it go up or go down?
And my answer is, I have no idea.
Today, I came across a very good piece of advice that I’d like to quote and share regarding the above.
The reason why sometimes we got impatient and entered into a position is simply because, we are afraid of losing out. Granted that waiting (for a long position) may result in missing out on a trade if there is no pullback. But then again, are we entering into the Long position because we fear of missing out or are we entering into the Long position because we have relied on a consistent setup?
It’s true we may miss out on stocks that skyrocketed. But this is definitely still better entering the position based on luck as luck cannot be replicated.
The above, for all my “gambling” friends. 🙂
