At one point in my life, I wanted to be a day trader.
I had just made an exit on my 1st business.
I had some capital and the time to invest in it.
I figured I had worked out how business works by having my own business.
The share market was just putting capital to work on other businesses doing the same thing.
Invest in good companies that are run well, and this should be easy.
The learning curve shouldn’t be too sharp.
I took a couple of courses prior to starting and told myself I would start small with $100,000 and build up to more.
The plan sounded reasonable!
What I didn’t know is that markets don’t work like that.
Believe it or not, investing in “good” companies doesn’t matter as much as you think.
Turns out the markets are driven by human psychology (people)
Trading started out well for me.
In my first month, I made a profit and was building up some skills.
I made a 3% return in month 1.
I started thinking I could get 30%+ returns a year doing this!
But… at this time, North Korea started threatening the world by testing and positioning nuclear weapons.
Guess what happened to those “good” companies I invested in when the news cycle was talking about potential wars?
The price crashed, and I lost money on my trade.
Or guess what happened when Donald Trump provoked relations with China?
Yep… you guessed it.
I lost again
I was dumbfounded by it.
As I started to understand the news cycle playing such a significant role in the markets, I decided to follow it more closely.
I would check the news each day before setting up trades.
( NEVER A GOOD IDEA )
Before you know it, I was becoming paranoid about world events.
Instead of being my usual optimistic self, I’m now looking at how I can invest in defence companies and companies that make underground bunkers.
Watching the news messed up my psychology further.
I lost even more money when I was panic selling positions.
After 3 straight months of losses, I quit.
I decided I wasn’t built for the markets, and it’s all rigged.
(not true, but I made it true for me)
By the way, after two weeks of not watching the news, miraculously, I felt so much better.
Turns out that what I was experiencing was trading psychology.
Which is common…
My emotional brain was taking over, and I had no skills to deal with it.
Logically I was a great trader, but I did not have any ability to manage my emotions.
As you know from other emails and the podcast, I have done a lot of work on myself since to build these skills.
What’s interesting is many business owners today are doing the same thing in business as I was doing in the markets, and they don’t even realise it.
I know many business owners right now who won’t invest in growing their businesses because of their own money fears.
Or who take a ton of risk because they got a tip from another business owner.
Don’t even get me started on how many business owners got into crypto and lost a ton.
Anyhow, this week on the podcast I have brought on Ash Playsted.
A master of human behaviour and psychology when it comes to investing.
In this episode, you will learn some incredibly powerful strategies and tools to level up your own psychology.
Just my opinion here…
A business will always be limited by the business owner.
I believe most business owners would do substantially better if they invested in developing themselves instead of more business skills.
All information we share is NOT financial or investment advice and is purely intended for entertainment and educational purposes only. Always seek professional advice before acting on any financial decision.
00:00 Welcome to Business & Investing
01:20 Charley’s trading journey
03:29 Who is Ash Playsted, and what does he do
08:30 Trading psychology in business
12:02 The shiny object syndrome
19:08 Improving through subtraction
20:54 Handling uncertainties when you’re used to having a structure
23:11 How your past affects your future
28:46 Is survival and success only about money?
33:28 What happens when you’ve already reached your goal?
36:34 Mindfulness and identifying oneself
44:45 The first step toward mindfulness
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