These two seemingly opposing concepts are at the heart of a lot of decissions that people make. In reality, the strongest concept is that of fear. Fear is a paralyzing force that prevents many people from even recognizing and acting on an opportunity, yet is the same reason for acting on the same. I’ll explain.
I trade stocks in the morning. Yes, when the market opens, I spend about a half hour in that harrowing experience known as intraday trading also known as Day Trading. If you just watch the stock market you can see that it moves up and down all day long. For me, I just need to know which direction and catch the move much like a surfer catches a good wave. The move is usually short lived and can turn on a dime. Why does it turn? Fear. Why does it move fast in one direction? Fear…of missing out. FOMO.
In the market…you live to trade another day. That means you protect your account. You must have some confidence in what you are doing before you take a position on a stock. Then you protect against serious losses. You also must remember to take your profits along the way. Those who think that there may be a shortcut to winning will lose big and reinforce the fear.
The key to conquering the fear is to have a good mentor and a disciplined approach. If you have that, fear can be your friend and protector. If you don’t it will paralyze you and keep you from your ultimate potential.
I write this, not to be preachy…but to be teachy. I need to be reminded of this everyday. BTW I know that teachy is not a word…it just fit the context. No FEAR.