Often when people hear the word "stock" or "trading" what immediately comes to their mind is an activity full of speculation and risk.
Without people digging deeper into what stocks or trading are, they just make negative judgments.
Even though you know that there have been lots of people who have succeeded in trading stocks such as Super Performance Trader alumni and also Premium Access members.
So what's the secret, why is it that some have succeeded once from stocks, but some have failed? Why is it that some are able to become a Super Trader™ while others seem to be gambling on the market? There is an interesting quote from Jesse Livermore which reads as follows:
“The stock market is never obvious, it was designed to fool most of the people for most of the time”
– Jesse Livermore-
Stock trading certainly has a profit and a loss. If trading never loses, it's called a lie.
However, a Super Trader™ knows how to limit the risk of such losses.
There will be people who buy stocks without the right knowledge and knowledge so they don't know what to do if something untoward happens.
In stocks there will be people who feel they are investing, when in fact they are gambling without them knowing it!
It's your choice, whether you want to be a winner or a loser in the market. I'm sure, if you're reading this article, you'll want to be a winner. Continue reading yes.
You know, the real danger is not gambling or being a loser in the market. In fact, what is dangerous is that you are completely unaware you are gambling or you are not at all aware that you are a loser in the market.
TRADERS HAVE A PLAN, GAMBLER DOES NOT
One of the most basic things that differentiates a Super Trader™ from a gambler is a plan. A trader has a trading plan, while a gambler just plays without having a plan.
Why is this plan important?
If you Fail to Plan = Plan to Fail
Because if you have a plan before doing something, you will be less confused when unexpected things happen, because you have prepared a plan.
What if you lose? What if profit? Everything is prepared.
Often when we trade and experience a loss, we get caught up in the emotion of “redeeming” the loss as soon as possible.
A Super Trader™ understands that trading is impossible to avoid loss. Just like swimming it's impossible not to get wet.
The mistake of most beginner traders is that they feel that trading should immediately profit, every click buy the price must go up immediately. There is even a concept when experiencing a floating loss "if I haven't sold it, it means I haven't lost".
This trait is a passive and dangerous trait. Why? Because when you see your portfolio is leaking and you just sit there and pray that the price will go up. Did you know that this can drag your portfolio deeper and deeper.
Whereas Super Trader™ knows that he must actively make cut losses when the stock price drops, praying is important but praying is not enough, you also have to be smart and firm!
“What about stocks with good fundamentals? In the long term, it will increase, it's a shame if you want to cut your loss now," you muttered to yourself.
Eitss…don't mix investment with trading, okay?
The initial goal was to trade, instead it became an impromptu investment just because you didn't have the heart to cut losses. Whereas when you make a cut loss, you can save your money without the need to feel anxious anymore.
TRADERS KNOW WHEN TO STOP, WHILE GAMBLER DON'T
Often we think that being a trader must always buy and sell stocks?
If possible every day have to buy and sell shares?
The reality is that super traders don't trade every day. Here I myself always teach each of my students that we don't need to buy and sell stocks too often.
Even Jesse Livermore said "money is made in waiting, not trading."
When you trade and experience profits, you will definitely feel good. Right? Just admit it..hahaha..It's natural to experience and it's human.
When you experience an advantage, you can't wait to tell your husband, wife, or girlfriend right? It's legal as long as you don't get caught up in being a neurotic gambler.
What's that?
Neurotic gambler, as described by a renowned psychiatrist from California, Dr. Ralph Greenson is an "addicted" activity to speculate.
It is this addiction that subconsciously drives you to trade and trade continuously.
When experiencing gains, the joy is not playing and when experiencing losses, depression is not playing.
This is the main characteristic of a gambler with a trader, a gambler CANNOT resist a very strong urge to bet.
Whereas an objective trader is able to restrain himself, he knows when to stop trading. For example, when the number of shares owned has reached the maximum limit that he set himself.
When the losing stock reaches the maximum loss limit
When you run out of big profits or run out of losses several times in a row
The bottom line is that a successful trader knows when he has had enough and quit.
TRADER TAKES CALCULATED RISK, A GAMBLER TAKES TOO MUCH RISK
Trading is the same as gambling.
Yes, you read correctly, trading is the same as gambling. Otherwise, you don't equip yourself with the right knowledge about trading. Trading can be anything you want, be it gambling or business, depending on how you treat the trading instrument itself.
I'm sure that every Super Trader will think that trading is a business that can't just be played around as if it's impossible to lose.
Like every type of business, trading also has an element of speculation in achieving profit. Every day we speculate when we face uncertainty.
When we buy citrus fruits that look fresh and tempting, they may taste sour. When we see a very beautiful pattern on the stock price chart, it can also happen to fail to breakout.
The difference is, Super Trader already has a plan to deal with these conditions so that the impact of bad possibilities can be minimized so that profits can be maximized.
Those are the three differences between a trader and a gambler. If all this time you are still behaving like a gambler, repent hoy! Be a Super Trader and be responsible.
Many Premium Access members have managed to double their capital (portfolio) two to four times in a span of 3 months to 1 year.
Be a Super Trader not a gambler.