If I ask you: "What is your goal of trading/investing stocks?" The average of you I'm sure will definitely answer: "To earn money." Even if it's only for additional income, pocket money or main income, but for all traders and investors, stock trading is definitely the end goal is to get profit in the form of money.
"Is it wrong?"
Not wrong. I'm sure you and I definitely don't want to trade stocks if you don't get any profit at all. Like people working but not getting paid, where do you want to be? Even if you invest for the long term, surely you expect the multiplication of assets. Multiplication of assets is in the form of money (increasing your money multiplied in the long term without having to do anything). But, if your main goal or motive for trading or investing is for money, that's WRONG.
"Well, how can that be?"
Yes, I myself also realized my biggest mistake, after reading several books about the trading mindset, one of which was Ellen May's book, Smart Trader Not Gamblers. What I learned was this: If my main goal of trading is for money, that's wrong.
Now think of an analogy: If all you think about is money, whenever you see a stock market filled with green-red-gray colors, all you think about is money. True or true? If you are looking for money, then what comes to your mind every time you look at the stock market is money and profit, money and profit, money and profit. Your orientation is just there.
So that you forget yourself. Forget yourself to do proper technical analysis. Forget yourself to run planning funds. Forget yourself to take profit and cut loss. Forget yourself to diversify the right stock. In fact, when you only think about money, maybe you don't do technical analysis objectively and rationally and buy stocks just because the stock goes up, aka gambling.
And one more thing you need to remember: If your priority is always to make money from trading, then what happens is your greed will appear and your rationality will disappear because your goal is how to make money from trading, even in the long term. as soon as possible. This also makes you forget yourself.
"If not money, then what is the main motive for trading, sir?"
The true trading / investment motive is: How do you create a quality trading system. Good at compiling a trading plan, determining when to take profit and stop loss. It's better to focus on how to create the best technical analysis formula for you, so you can earn money from the stock market. Read the post: Use Technical Analysis Wisely. If you are a trader, then select potential stocks after the market closes for you to trade the next day.
Remember that: When you try to prioritize quality technical analysis, profits will follow.
Why am I posting this article? Because I myself have experienced the ins and outs of trading, and when my trading orientation is just to make money, rationality is lost. They just want profit, so they forget the position of our funds and end up using margin funds or borrowing, saving too many stock portfolios and many other bad things.
Hopefully it can also be a lesson for colleagues who are in the stock business or newbie colleagues who want to enter the world of capital markets, first fix your trading motives.
