Your Money or Your Health

Don't fall into the trap of falling in love with money. It will spell disaster for your trading and more importantly your health

Posted in Traders' Delusions, Submitted by Trading Critic on Mon, 2006-07-17 14:07.
Be wise: Choose your health over money when you trade the markets.

Traders, stock brokers and investors sometimes fall into the temptation of getting too attached to money. Common sense tells us that money is nothing more than a tool to get from A to B. There are a few far-reaching consequences of getting too attached to money, the most important being your own health.

I was reminded of this when I was watching "Inside Business", Marcus Padley, an Australian market commentator ended his remarks about the market with this:

Meanwhile, I have spent the last four days in a cardiac ward in a Melbourne hospital. Two bits of advice from that experience. Firstly your health is vastly more important than your money. And the second is, don't buy too many small resource stocks.

I'm not going to lie and say I've never have been a victim of this same infirmity. I have and I still do. I've experienced something similar and I expect other traders to have felt the same emotions from their own trading. Sweaty palms. Obsessed with watching your charts. Breaking your trading rules. Dizziness. Fear. Greed. Loss of concentration. Heart beating fast. Headaches. Loss of confidence.

People often fall into the trap of falling in love with money. Some even believe that money can bring you happiness. It's only human. It's only natural. As a trader, I believe being aware of this weakness as you trade is a key to your own success in trading. Your health and wellbeing is far more important than money. To overcome it, the best traders learn risk management techniques and always trade with a system complete with a stop loss.

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