For many of you who read my articles and wonder where does he come up with all this crap, well to be honest, the alien voices in my head do have some input. However, it’s mostly through my 20 years on Wall Street and consulting for many popular online ventures including dating sites that allows me to take vastly unrelated topics and find a way to combine them. Stock trading, or more precisely, Day Trading is very similar to trying to acquire the elusive trophy girlfriend. One does not go right from dating the cute Barista at your local Starbux to going out with a Victoria’s Secret model right out of the gate. Day Trading is the same inasmuch as you are more than likely not going to enter into a million dollar trade on your first click of the keyboard.
Day Trading versus Dating
Day Trading and dating may seem completely unrelated but for each of them to be successful a solid foundation must be built. Do you really think that successful traders just show up every morning at their computers and winning trades just magically appear in the accounts? Of course not! The same attention to detail and winning habits applies to the dating process as well. Anyone can go out and buy an expensive new suit but to make the suit look good both it and your body need to be tailored. Preparation is the key to winning consistently in both the stock market and in dating.
Consistency is another concept that is fundamental to success in both dating and day trading. When you find something that is working for you, stick with it, and if possible improve upon it. With the exception of rock stars and pro athletes very few guys consistently date the trophy girlfriend . The guy who dates the average or cute girls is usually very happy and rarely alone, and may even occasionally still get that elusive trophy girlfriend. But, the guy who only shoots for the super model to the exclusion of everything else usually ends up alone or enjoying Chinese take-out with a goldfish named Bob. In the trading arena by passing sound winning trades in pursuit of the monster trade will leave most traders a bit short on their mortgage or car payments.
The stock market and dating learning curve
Understanding your trading or dating environment is paramount because it allows for you to work within the parameters that are to a great extent, outside of your direct control. By more fully understanding what resources are available that can assist you in achieving a desired outcome (“profits” or “a girl”) you can better utilize those resources. Minimizing things that detract from this desired outcome will help lessen losses in both your P&L and your love life. There is a learning curve in both day trading and dating and by focusing your energy on stocks and blondes that have a better chance of winning you will undoubtedly be happier and have an obviously better chance of success. Throwing your money and emotions into stocks that have very poor records or dating women with enough baggage to fill the closet usually never ends well.
Dating and Trading are both Competitive
The stock market and dating a very attractive woman have another important aspect in common; competition. With trading stocks, the money you want to make currently belongs to someone else and they really are not fond of losing any of it. The same goes for a beautiful woman, most are currently dating someone else and that person is doing their best to prevent anyone from taking her away. But by using common sense and focusing on what actually works instead of merely emotion, you should be able to succeed in your quest for stocks and blondes.
Fear and the Art of Daytrading