#1,464 Investing and trading psychology

Al, you know, we've been talking about opportunities with the markets now for several years i i don't have enough hands it feels like to count how many years we've been on the radio talking about the financial markets how they work how to make smart investing decisions but most importantly how to help people get started and i you know we discussed that a little bit in the last segment is people just don't know where or how to start because there is a lot of garbage out there you have to sift through what's good what's bad and if you don't know you're just guessing And that's the biggest challenge out there, Al, is people are just guessing with their finances.

Think about this for a second.

If you're investing in trading right now and you don't have an actual strategy with capital management rules, steps, and a way to do that, you're just guessing.

You're putting your money out there on the street and just hoping it doesn't disappear.

Hoping it multiplies is what people are doing.

But it's really not your fault if that's what you're doing right now.

It's because you're taught to do it that way.

You're trained subliminally to do things that way.

Because you have the old sayings that everybody knows.

Anytime you talk to somebody and you say, well, do you trade or invest? Oh, yeah, I do.

And they say, well, how do you do it? Well, I buy and hold.

Well, first off, that's just an open-ended statement.

That doesn't really mean anything.

That's just buy with no plan of gain or loss.

It's just buy and hold.

But another term people say, and people can probably say it with me, they say, I buy low and sell high.

There you go.

And those are terms that you've been conditioned to say, and you've learned that your whole life.

And that's what people think they're doing is they think they're buying low and selling high.

Well, if you don't have a strategy, you don't know where to get in, where to get out, you're just buying and hoping it goes up.

So those are more guesses.

So I think it is sad that people are just guessing with their money and they're hard-earned money.

People work very hard these days for their money to support their families.

And then they gamble with it in the market.

And the market isn't gambling if you have a strategy and you have rules and you have steps in capital management.