It's About More Than Money

A fellow trader wrote recently that the trading system he had been building wasn't working, and that he was confused and suffering a rollercoaster of emotions .... I wrote the following in reply:

So the wooden building blocks you’ve been stacking up have toppled over and the castle you were building is now strewn all across the floor. Gotta tell you, Rich, it happens to all of us—and it won’t be the last time it happens!

I am suspicious that such setbacks happen more often to traders than to people who clock in and out at the same boring job everyday … but, then, it’s the clocking in and clocking out life that you want to avoid … right?

If that’s the case, and if you’re going to be true to yourself, then confusion and frustration is the price you pay for choosing the path you’re on. The fact is, suffering is inherent in life (per Gautama Buddha). And, the reality that your building blocks are little more than a scattered mess is just one of life’s lessons. Your job as a trader is to suck it up and keep on keepin’on! Winners never quit and quitters never win and all that …

Here’s a relevant question for you to think about … why do so many lottery winners end up broke?

Before I attempt an answer, here’s another question for you … do you think people who play the weekly lottery suffer through the same emotions you’re feeling every time they check the paper and come face-to-face with the fact that they didn’t win … again?

My sense is … they don’t. They’re certainly disappointed, but not confused, and not on the same emotional rollercoaster of highs and lows. The reason they don’t feel the same depth of emotion is because, other than the cost of the ticket, they have no investment in the game.

You, on the other hand, as is the case with all professional traders, have an investment that is a great deal more than monetary. What you and other traders have is an investment in a private, personal search that energizes you and infuses your existence with meaning. A trader can say, “I trade, therefore, I am.” Not so for lottery players. For traders, it’s a profession. The game for lottery players is simply a casual roll of the dice. The price you pay is higher and the pain of loss and ‘confusion’ is more deeply felt.

So back to the original question: why do so many lottery winners end up broke?

The answer, I think, has to do with the fact that they haven’t made the same investment that you’re making. Winning, in the trading game, has meaning that extends far beyond the amount in your trading account. Lottery winners, on the other hand, don’t have that emotional dimension and, therefore, have little respect for what they’ve won. “It’s only money,” is exactly the problem.

I’ve learned more from my failures than from my successes and I can only guess the same will be true for you. Success, all too often, has within it the seeds of failure. Better to learn what you can from your current state of confusion … and then, move on!