Principle #233
Boldly risk what they possess
Chasing what they don’t need yet desire❗️
A trader is willing to risk for what they need for that which they can’t have. Trading requires risking to make a return, which is not guaranteed. Here’s a breakdown of its meaning:
🔸 Risk Taking: It highlights a fundamental characteristic of traders – the willingness to take risks. Traders often put their capital at stake, knowing there’s a possibility of loss.
🔸 Pursuing the Unattainable: The phrase “for that which they can’t have” suggests that traders sometimes aim for goals or returns that are highly ambitious or even unattainable under normal circumstances.
🔸 Chasing Unnecessary Goals: The addition of “and don’t need” implies that traders might chase profits or opportunities that go beyond their actual needs or practical objectives. Various factors, such as the thrill of the challenge, the desire for more wealth, or the psychological aspects of greed and competition, can drive this.
🔸 Irrationality and Human Nature: This behaviour may seem irrational, as it involves risking something of value (what they have) for something potentially unnecessary or unachievable. It underscores the complex interplay of human emotions, ambitions, and decision-making in trading, often influenced by factors like overconfidence, market euphoria, or the fear of missing out.
🔸 Market Dynamics: The statement also reflects the dynamic and speculative nature of trading, where decisions are not always based on fundamental needs or conservative strategies but rather on speculative bets, market trends, and sometimes the allure of achieving something seemingly impossible.
📌 In essence, successful trading is about more than just the technical aspects of buying and selling assets. It also involves a deep understanding of one’s risk tolerance, psychological motivations, and the broader market dynamics.
Trading is the intricate balance between the desire to achieve more (often beyond practical needs) and the necessary acceptance and management of the associated risks.
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