Lesson: 2
Many beginning traders are unaware that the markets will confront him/her with an environment that is categorically different from anything he is accustomed to or trained to deal with effectively by society. For example the markets can be looked at as a never ending event always changing, virtually without structure, in perpetual motion with unlimited potential for profits as well as loss in every trade.
The psychological impact on the individual interacting with an environment is formidable- especially when you consider the many ways in which all of us typically go about structuring our lives with highly defined boundaries. Limits, and rules, so things stay basically the same. For most a static environment is fundermental component of their sense of security and well-being.
The markets can tease a trader with the very real possibility of fulfilling his grandest dreams of financial independence and at the same time stand ready and willing to take away everything he owns -and more.
Also I would like to Importantly add that the principles of time, effort and reward associated with most jobs situation simply do not apply with the markets.
Most jobs offer an Unchanging reward, regardless of effort because of hourly wages or yearly salaries.
For a trader effort can be irrelevant, and there is virtually no relationship between time and reward. A trader can be stunned with a windfall of rewards and profit in a matter of seconds for making one simple decision and the only energy expended was mental. Coupled with
Strong trading plan
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