As the philosopher said to the guru: ‘Why are we here?’
Are we trading or are we investing ? It’s important for participants in the financial markets to clarify why we are here and what we are hoping to achieve. If we’re trading; how does this role affect our transaction style? If we’re investing; which markets are we likely to look at? What returns do we expect and how often do we plan to transact, compared with a trader?
Answering this question clarifies boundaries within this market maelstrom. It gives you the discipline to leave something on the table for the next person, and saves you money on transaction costs. I’m confident that clarifying it will also diminish your stress. As software developers who were positioning our retail product Assidium for the market, we too had to answer some tough questions about why private individuals enter into the financial markets.
The real question is: what do you want to get out?
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