Continuation from two weeks ago…..As I was about to start working on this section of the book the following breaking news story hit the wires, “Robin Williams Commits Suicide at 63”. Williams, one of my favorite actors and one of the most successful comics of all time had everything. At least what most people could only dream of. Wealth, a successful career in a highly competitive business, millions of fans, critical acclaim, an Oscar, children, a loving family, health, exciting projects and a bright future. Yet, after making millions of us laugh, it wasn’t enough. He was dying inside. Depression, drugs, alcohol were just too much to handle. And while we will never know what finally forced him to take that final step, his actions were preventable by applying the same concepts discussed in this book.
Just like the rest of us, Robin Williams was too closely associated with his own mind to come to a realization that he could control it. To come to a realization that he could control the negative energies associated with depression, stress, fear, greed, jealousy and a million other negative emotions. To come to a realization that could separate from them and then transform them into something positive. In the very same fashion that we will be transforming STRESS energies in this book. Most importantly, this ability would have given him the strength and the skills necessary to overcome most of his obstacles. Perhaps giving him the attitude necessary to save his own life in the process. Just as I’ve saved my own many years ago.
Outside of being in an active combat zone or perhaps an emergency room physician, stock traders or investors who actively participate in financial markets work in the highest pressure/stress environment on Earth. Day in and day out. Think about it for a second. Money managers who work with large sums of money have the ability to make or lose tens if not hundreds of millions of dollars within just a few hours. Often making millions of dollars one day, only to lose it all, and their shirt, a few days later. In fact, the emotional peaks and valleys for most of the Wall Street traders might be as extreme as a highly speculative tech stock behaving in an erratic fashion.
In other words, the amount of STRESS associated with avoiding losses while trying to outperform the competition on the Wall Street is truly immense. If we can somehow ascertain how to control STRESS energies associated with trading in the stock market, we can then easily apply the same principles to our daily lives. To deal with various STRESS energies on the consistent basis.
Perhaps one of the most successful and best known traders on the Wall Street was Jesse Livermore (1877-1940). He was famous for establishing a number of trading approaches that are still in use today as well as making and losing several fortunes in his lifetime. Most notable, we was able to amass a fortune of $3 million after 1907 crash and a fortune of over $100 million (over $1 Billion in today’s money) after 1929 stock market crash. Only to lose both shortly thereafter.
In essence, Livermore introduced a trading philosophy that emphasized increasing the size of winning positions while quickly cutting losses.
“All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis. The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the person of inferior emotional balance, or the get-rich quick adventurer. They will die poor.” —Jesse Livermore, How To Trade In Stocks
To Be Continued Tomorrow……..(Why Am I Seeing This On A Financial Website?)
How To Control Stress And Fear If You Are A Wall Street Trader Google