Listen to the Podcast
Subscribe to the podcastiTunes Stitcher
Hey, this is Sasha and welcome to another episode of 'Let's Talk Stocks' and today I want to let you know how not to be a Fat Stock Trader.
Now, when I say fat, I'm not trying to be mean or hurtful especially if you're struggling with weight.
What I'm trying to do is make sure that you become a better trader, that you can see and understand the concept I'm trying to share, so that you continue to evolve your game.
It's not about being mean. It's about taking you to the next level with your trading.
Now, to illustrate this example, I want to share with you a quick little story about when I first arrived in the United States.
If you didn't know, I grew up in Russia. At Tomsk to be exact. Then, we moved to the United States.
In Russia, they didn't have a lot of buffets, all-you-can-eat, or restaurants for that matter that we attended or went to because we were very poor and lived in a lower-level society.
When we first arrived in the United States, we went to a restaurant. It was the KFC restaurant, and there we went to the buffet. It's the first time I've seen a buffet as a kid. I was maybe about 7/8 years old when I went into this restaurant. It's like you pay once and you can eat as much as you want. That to me was a fantastic concept.
What did I do? I stuffed myself as much as I could because remember we grew up not having a lot. So, you go to the buffet. Eat as much as you can and then what happens afterward? You feel sick. You're tired, and I ended up throwing up just shortly after we left the restaurant.
That's what happens overall when you overeat stuff yourself and have too much. This is what I'm getting at when you're a fat stock trader.
What is a Fat Stock Trader?
A Fat Stock Trader is a person who's trying to indulge in their cravings. They're doing things on an emotional level.
Look at this regarding cravings for eating disorders -- people that want to eat too because they feel bad about themselves because they're depressed.
It could also look regarding relationships. When you miss someone, let's say you're a lonely man or a woman and you miss a partner, you want someone to spend your life with. Well, you go ahead and maybe make bad choices for these relationships with people that are not a good fit or match for you -- but you doing it anyway.
That's being in a fat relationship and instead of being in the fat stock trader.
But this is what stock traders do -- they miss the money, just like other people miss relationships. They get into a bad relationship. If you miss and crave, let's say money, or you're hungry for money, you end up taking on bad trades, and that's what a fat stock trader does.
Now, why is it wrong to be a Fat Stock Trader?
You can see where I'm going with this.
If you're taking on bad trades, it's going to create more losses. It's going to create problems with your emotions, psychology. You're going to get into the wrong trades. You're going to lose more money than you should. Not to mention those things were not right for you anyway.
There's a lot of people in the world. There's a lot of relationships happening. Maybe your ex-wife or ex-girlfriend are getting together with some other people and those relationships work great right, but they weren't great for you.
This is what happens with certain trades -- there's a lot of trades out there, and they're great trades, but they may not be right for you.
You need to choose the right trades that are right for your risk levels, your risk appetite, your experience, those kinds of things. That way, it can be a better fit for your trading or investing.
That's why it's terrible to be a fat stock trader because you're just choosing things based on emotions. You're just choosing things based on what you feel good or what makes you feel good at the time and not necessarily the best thing for the long haul.
It's better off to be a Hungry Trader
That's what's better. What does that mean?
If you've never been hungry, then I recommend you try it at least for a day or two, so that you know. Either not eat. It's not going to kill you, but you'll see that that hunger starts to kick in that drive starts to kick in, and you want something you want it, you want it.
But it's a different kind of drive than a fat craving drive. When you have a hunger drive, you want it for success in a way, and you're more determined to get it because it's essential for you to survive.
You can't do it for ten weeks and go out without food. But going out a little bit, being a little bit hungry, will move you forward in your trades. You are hungry for success.
The drive will create more -- hey, I want to learn more. I want to learn more about options, and if I don't know about options, I'm hungry for learning about technical analysis because that's what I want to go after.
That's what hunger does to you.
Whereas, instead, if you're missing the money, that's more of a craving. You're trying to do all these things because you feel like you're missing something.
It's an entirely different approach to be hungry than it is to have that craving for something and indulging yourself.
So, I hope you see and understand why you shouldn't be a fat stock trade because if you are and you're putting on trades because you're indulging in yourself, well eventually, what's going to end up happening is you can end up puking just like I did after going to KFC buffet.