Have you ever feel frustrated after losing? Thinking about how much money you lose and regretted why ever trading if we keep losing money? I'd like to help you to swift perception about trading and making analogy with business so we may realized that trading is a form of a business.
Business like trading. We make a plan, execute it, and take the result. Wheteher it's profit or loss. In every business, we need a solid plan, strategy, tactic, measurement, cost, investment, and so on. In trading we also need all of it. Just like trading, business also need a research, analysis, etc. So here's the most important element of business that the very same with trading.
Let's say you start a laundry business. You will make plan. Profit target yearly, monthly,weekly, daily. You then research the laundry business and also the environment. And you calculate the COST and INVESTMENT.... Yes, you get what I mean? COST and INVESTMENT. You already calculate how much cost to start a business. In trading, the COST is your STOP LOSSES. The STOP LOSSES is pre-defined just like business. Most of beginners I know don't care about the COST. Now the question is... Do you treat your trading as a SLOT MACHINE or BUSINESS?
...Even SLOT MACHINE has a pre-defined COST.
If the Cost become too big aka you keep losses, the it's time to review your business.
1. Is it because Un-calculated COST aka. STOP LOSS TOO BIG?
2. Is it because you reject customer aka. PROFIT TAKING TOO EARLY?
3. Is it because you cannot compete with your rival aka. LACK OF EDGE/ADVANTAGE?
4. Is it because your business lack of system and violate your own rules aka. LACK OF DISCIPLINE?
There's almost no difference between Trading and Business. To survive in this battle, a constant improvement and development are needed.
Hope this help...
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