Losses Pain > Joy from Gains. Joy Helping Others > Joy From Gains

Part 1: Losses from Pain > Joy from what you Gain

It is human nature to feel more pain from losses than joy from winning, all things equal.  For most people it hurts more to lose $100 than to the excitement of winning $100.  And since basic human emotions is totally front and center in stock trading, a lot of newer traders can’t handle the pain from the risk long enough to reap the rewards.  Even if you’re doing everything you’re supposed to, set a stop to limit your losses, it still hurts.  Sure, there’s beginner’s luck, especially in a bull market, where anything you buy goes up and you make money.  But after that phase you’ll have to deal with the reality of risking something every time you buy a stock or short something.  I had this problem too, and it happens a lot when you’re out of sync with the market.  Buy something and it immediately drops, going against you and losses start piling up.  It hurts.  It hurts so bad that you just hope it gets back to break even.  And when it does?  You ditch the trade for fear of it dropping again.  What usually happens?  It keeps going up and you COULD have made money if you just stuck with your plan, so you kick yourself from the lost opportunity, which hurts also.  That’s just something you have to get over and trust your strategy.  If you KNOW the statistics of your strategy says you’ll make money over time, let it work! Now on to part 2…

Part 2: Joy from Helping Others > Joy from Gains and/or pain from losses

Once you’re able to let loose a little and not micromanage your trade, something to focus on is helping others.  Like many people, I have the issue of losses hurt more than what I gain.  BUT, when I help others (meaning it’s bigger and encompasses more than myself) that positive feeling trumps everything else, including the pain from losses and excitement from gains.  I’ve settled on the belief that “helping others” in just about everything is a passion of mine.  I’ve done a lot of web design, graphics work, video production, and other stuff for people for little or nothing just because I wanted to see them succeed.

Sure, that has burned me at times where people take advantage of my generosity, but again, the joy I get from giving is much more than the pain (in this case, getting burned.)  Helping others is the reason, actually BOTH reasons, I started MarketHEIST.  For one, we wanted to help speed up people’s learning curves and keep them from losing too much money in the beginning.  How? By sharing good tools and teachers to try.  Some people look at our site and think we’re just trying to sell stuff.  Actually the majority of resources we list are free.  And of the tools and training programs that cost money, most have no relationships with us. It’s all just stuff we’ve seen and know can help you stop losing money, help you make money, and help you make more money.  It’s like any other sport or skill, you have to get through that initial hump before you can get the rhythm of things…except with trading it’s not only your pride that gets hurt but also your bank account.  For many, losing too much money puts them out of the game and prevented them from making it over the hump.  Many traders who have made it to the winning side, but have gone about it the hard way with lots of money thrown into the market, agree that a good education and training can save new traders a ton of money and a ton of time.

Secondly, I felt a lot of great stock market resources and teachers weren’t known by the public.  There’s a ton of “hidden secrets” that actually aren’t hidden.  They’re free, they’re available, but they’re hard to find.  Why?  Great traders that people can learn a lot from are usually too busy with trading to market themselves and be known.  What Joe Plumber is left with is Yahoo! Finance and salespeople – salespeople who are great at selling their stock market service because that’s all they do…they don’t do a single trade themselves.  So, as our second part of our mission statement, we wanted to help the great traders compete with the salespeople by providing our technology and media expertise.

Part 3: Helping others to Help Yourself – the Humble Circle

That’s just what I came up with to merge my passions of trading and helping others.  Many focus on the “teaching” aspect once they have your strategy down.  Whatever you choose, helping others also benefits you.  So, if you want to make helping others a selfish thing, you can :)  Helping others forces you to learn what you’re teaching really well.  You may have been “Good” at something, but after researching questions people ask you, or explaining something a million different ways, you’re “Great” at it.  Also, helping others takes the attention away from yourself and lets you get perspective.  It can also help you not micromanage or panic.  Same reason doctors give kids candy or small toys after a shot – it takes the attention away from something that hurts.

Part 4: I watched…

a lot of Stargate SG-1 this week while battling the flu.  Watching SG-1 is one of my favorite past times…partly because Richard Dean Anderson’s weird sense of humor in it is how I perceive my humor.  but he does it better…so I aspire to be like RDA, or rather his character Jack O’Neill.  Nothing phases him.

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