Let’s start with the elephant in the room…We have changed the blog name from Little Big Movement to the IONIC Capital blog. This is a strategic decision which will enable the growth of this blog to continue, and provide a brand name that represents our future. While there has been a drought in blog posts in 2019, we have several new changes and more original content coming for 2020.
At this point, you must be wondering what content are we talking about. Well, I am excited to tell you what we have to come.
- The Journey of a New Trader – What it takes to be a full-time trader
- Trading Book Reviews
- Podcast – Trading Psychology
- Youtube – Live Trading Streams
- Instagram – “Behind the scene” and motivational content
- and more blog posts including exclusive content from Chiu Coaching
Ok, enough of the sales pitch lets get down to business.
Do You Know Your Enemy?
We all dive into the charts forgetting who is on the other side of each trade. Let us quickly go over the fundamentals of the financial markets. For any market to function, you need buyers and sellers to agree and disagree on price. The last point is crucial because if there are no disagreements on price, the markets will continue to trade at one price forever. We are humans, so we never seem to agree for more than one second 🤣 , which creates these small and large movements in price.
But the question “Do you know your enemy?” is not just about who is on the other side of your trade, but a psychological question around who affects your performance when trading/investing. Have a look at the list below, and we will break down our topic for this blog post – Yourself.
- Yourself 🤕
- Haters 🤨
- Social Media 😏
- Money 😕
- Financial Institutions 🤬
We are starting with the one topic we all try to avoid. When we decide to take any risks in life, our survival instincts kick in to potentially save us from self-destruction. This is brilliant in most cases, but when it comes to trading or a life-changing opportunity with high risks, you will be your worst enemy. First, there is the fear of taking the risk. The brain tells you that there are better opportunities with less risk, and you hold back until you can break the fear. Let me be the first to tell you that if there was an opportunity with less risk, you would have taken it by now 😥
When we are talking about investing or trading it starts with your own beliefs. Most new investors or traders jump into the financial markets believing in there strategies but jump out the markets after the first bad trade. The markets are never against you, they are only a mirror of your beliefs. We like to compare trading with gambling, but they are totally different on the psychological level. Gambling has a defined start and end, whereas trading does not have to end. That last statement is not 100% correct as your broker called hit you with a margin call or your stock could go to zero 😂. This clearly means that YOU! should be in full control when trading. YOU! Get to define the start, middle and end when investing or trading. It is unclear why people forget this fundamental point when trading/investing and focus more on the technical side. One you believe the market is not against you, the freedom to create potential opportunities in the market will present itself over and over again.
At some point in your trading career you will be hit with these hurdles:
- Not making the career change you wanted.
- Believing becoming a trader/investor is a high risk.
- Not executing your trading/investing strategy.
To overcome fear, the majority of the time, you need to overcome self-doubt. Easier said than done (I know), but start with focusing on the rewards and how the opportunity could change your life. The drive to move forward needs to be enough to overcome the self-doubt and rid you of your fears. It won’t hurt to meditate on the topics which reek of fear and find your inner peace with them 🤗
Now I know this topic is never spoken about when we talk about Investing or Trading. Your body is the framework which holds your head up and like a car, you need to ensure that you are maintaining optimum performance for your body. Think about it with an open mind, and it does not matter what industry you are in or what you are trying to achieve; you still need to be in good health to achieve your goals. One of the greatest mind in the world, Bill Gates is still playing tennis at the age of 64. Keeping the body healthy will release endorphins which will help with our mental health (Mind/Brain) which we know we need for Investing/Trading success 🧠
This topic always interests me when it comes to investing because it starts with belief. Mental health can be affected by the body and other peoples emotions within investors or traders lives. Mental Health is more important than any other topic you can ever focus on when it comes to financial markets. It’s a known fact in any facet of life when you can enter the ZONE you will be like Neo in the matrix. To be able to enter the Zone you must be in the right mental frame of mind. This makes it clear that you need to find ways to ensure your mental health is in tip-top shape before making any trade or having thoughts on an investing decision. We believe meditation and daily exercise is the key to becoming a successful investor or trader. Start with the mind and being in a good place mentally, then the body will naturally become a focal point for you.
“Your mind and body are one” – Jermaine Joseph
Well! That is part one complete, next time we will be talking about the haters. Hit the like button (where ever it is) and follow the blog. If you are not a WordPress type of person, don’t worry you can also follow us on Instagram @ioniccapital
🤓 May the force be with you