A Wish versus a Decision in Trading – #AnirudhSethi

Wish:

  1. Based on hope or desire without a concrete plan of action.
  2. Often driven by emotions such as fear, greed, or FOMO (fear of missing out).
  3. Lacks research and analysis to support it.
  4. Can result in impulsive decisions that are not aligned with trading goals.
  5. Often based on incomplete or incorrect information.
  6. May involve chasing trends or following the crowd.
  7. Can lead to irrational risk-taking.
  8. Often leads to losses in the long run.
  9. May not take into account the trader’s risk tolerance.
  10. Can result in a lack of discipline in trading.

Decision:

  1. Based on careful research, analysis, and a well-defined plan of action.
  2. Driven by logic and reason, rather than emotions.
  3. Supported by data and information from reliable sources.
  4. Aligned with the trader’s specific trading goals.
  5. Based on a thorough understanding of the market and its dynamics.
  6. May involve a contrarian approach or taking a calculated risk.
  7. Takes into account the trader’s risk management strategies.
  8. Often results in long-term profitability.
  9. Can adapt to changing market conditions.
  10. Requires discipline, patience, and consistency.

Wish:

  1. Often focuses on short-term gains.
  2. May involve ignoring warning signs or red flags.
  3. Can lead to overtrading or holding onto losing positions.
  4. May involve trying to time the market or predict future price movements.
  5. Can result in missed opportunities or regrets.
  6. Often relies on luck or chance.
  7. Can lead to a lack of confidence in trading.
  8. Can result in emotional burnout or fatigue.
  9. Often lacks accountability or responsibility.
  10. May involve blaming external factors for poor performance.

Decision:

  1. Focuses on long-term gains and sustainability.
  2. Takes warning signs or red flags into account to minimize risks.
  3. Involves cutting losses quickly and letting profits run.
  4. Uses technical and fundamental analysis to inform decisions.
  5. Maximizes opportunities and minimizes regrets.
  6. Minimizes reliance on luck or chance.
  7. Builds confidence through a track record of successful trades.
  8. Emphasizes self-care and balance to avoid burnout.
  9. Takes accountability and responsibility for trading outcomes.
  10. Learns from mistakes to continuously improve trading strategies.
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