4 Key Trading Lessons From The Beach
It's a gorgeous 4th of July weekend. Loving this beach action right now, which is hard to do in Nashville, TN. Thats why we are here in Panama City to visit my girlfriend's family and, of course, get some serious beach time in. You might think it's a stretch to relate snorkeling to trading. Well, there's only one way to find out.
#1 Gear: When trading, you do have to understand the mechanics of trading, AKA the 'gear.' You see, in order to trade the market profitably and consistently, one has to have at minimum a broker who they like and are comfortable with. When snorkeling, well, one has to at least have a mask and a snorkel. $40.00 at a shop near the beach is what it costs for two. Then, we were both able to participate fully.
#2 Overcoming Fear: This is pretty self-explanatory. Some people are just straight up afraid of being in the ocean, near rocks and reefs. Likewise, many people are terrified of losing money. There are risks in every action we take in life. Doesn't mean you shouldn't do them (like drive, snorkel, fish, Jet Ski, and the list goes on). The best way to overcome fear is to have a trading partner (or snorkeling partner) who is experienced and can help you.
#3 Be Calm: I have a few champion Scuba diving friends who have told me controlled breathing and being calm is crucial to survival. Snorkeling is the step before scuba diving. One has to breathe calmly, be controlled and focused. In trading, it's very similar. Don't rush! I know every single trader in the market wants to make $1,000,000 by tomorrow. Solid chance that won't happen. If you love trading, great! Keep doing it and understand that the traders who are calm and patient often make the most money in the long term and have a better quality of life. Be patient, or as I like to say, 'Be patient.â€ See what I did there?
#4 The Opportunities: This was one of my biggest 'Ah Ha' moments as I was peering at the thousands of fish at St. Andrews State Park. There was one big fish and thousands of minnows all around him. Please understand I am not a marine biologist, so this question might sound ignorant, but I was thinking to myself, 'Why doesn't he eat all of them?â€ Then it struck me. He can only eat so many until he is full. I have the privilege to live in America, where literally I have thousands of eating establishments to choose from every day. It's truly a blessing. Well, this larger fish I saw had the same opportunity. I'm assuming he was full so he didn't care. Well, real life traders, in trading there are more moneymaking opportunities every day than we can take advantage of in a life time. When day trading, swing trading, or longer term investing, we need to remember this. I often look for one good trade a day and six longer trades per month.
Less is more in trading. The market rewards the specialist. Don't let the stocks, opportunities, news, noise and clutter distract you from your goal or plan.
Until next time, love life, live life and trade it!
Jerremy Alexander Newsome
- CEO of Real Life Trading and Avid beach enjoyer.