Too many people underestimate the emotional component of option trading. They think it will be easy to pull out when they're losing money... and ride a winner when it's making money. But what we imagine will be easy to do is actually much harder in real life. This is why I'm a strong advocate of trading rules that help you keep your emotions in check. Without firm rules to follow, you may soon find yourself on an emotional roller coaster that quickly drains your trading account. Here are a few common emotional responses people have when they first risk real money on a trade... But first I want to share a quote I stumbled upon while reading a book. "Investing in stocks is definitely the best course of action, just so long as you're the kind of person who can will him/herself to stop in the middle of an orgasm." -Jeff Yeager, The Ultimate Cheapskate's Road Map to True Riches, p. 204 This quote made me laugh. Because it says something about how us option traders must force ourselves to behave. * When you're in a winning trade, you have to exit when things are still looking relatively good. * And when a trade moves against you, you still have to close your position, even if you think the situation could turn around in you favor. This is definitely NOT easy. But not so hard if you develop and FOLLOW a strict set of trading rules. Here's the thing: The newer the trader, the more likely it will be that he will let his emotions control him. Example: New traders are notorious for taking profits too early. That's because their "inner miser" is saying, "Hey, you've made enough money. You should get out while you still can." This is greed talking. They listen, so they take profits early. Losing trades are different. When a new trader sees a trade move against him, he will tend to wait too long before getting out. His emotions will tell him, "Your account is only down a little bit. There's still time for this to turn around. Don't worry, you'll make money." This is the fear of loss speaking out. When traders listen, they lose big time. If you dream of becoming an option trader with a million-dollar trading account, then you must learn how to ignore your emotions, even when fear and greed are demanding that you listen to them. Remember: Always use a tested-and-proven set of trading rules to control when you get into a trade and when you get out.
Sometimes those of us in the real estate business forget about the emotional component of moving. Whether you're going across town or to the other side of the country, it's always a stressful time. We get so excited about our wonderful East Valley area that we get all wrapped up in telling you about it and helping you with your housing needs. Let's step back for a minute and look at some of the anxiety inducing aspects.
The whole process of buying and/ or selling a home can take its toll. You worry about finding the right place and how the approval process will go. You've fallen in love with the East Valley because it's so appealing, but you may not know what it's actually like to live there. If you have children, you have to remain the grown-up and assure them that all will be well. If you don't have kids, you'll have to periodically remind yourself that you are in control of the situation.
The key is to take everything one day and one step at a time. For example, if you've pre-qualified for a mortgage, you can start looking in your price range. If you aren't sure which East Valley community you want to settle in, do some preliminary research online. Each town has its own particular flavor. If you want space around you, Queen Creek may be your cup of tea. If you want a quaint and restored beautiful downtown, then you may do well to pick Chandler. The point is, learn what you can about each site, and then visit.
Looking over a new area is both scary and exhilarating. These are both emotional reactions, so try to tune into your rational self when you check out the neighborhoods in person. Take your list of ?must haves?, such as good schools, a close commute to work, good shopping, and especially what you're looking for in a house.
The East Valley features a great deal of new construction because it's been growing rapidly. You can still find older homes if you prefer a bit of the lived in feeling. Think about your needs. Does the gorgeous four thousand square foot house with the stunning view knock your socks off? That's great, but if you don't have kids and aren't planning on any in the next five or ten years, you may be taking on more than you need. By the same token, if you can afford it and don't mind the upkeep, it could be the perfect investment. Only you know for sure what will work for you, but we'll be glad to help you make informed and rational decisions.
Above all, be positive. If you do have a family, make finding your home and moving an upbeat undertaking. The kids will need reassurances that East Valley schools are the best (they are) and that they'll meet many new friends. You'll need that same sense of conviction. Just remember that this is an adventure and that change is good. You'll love living in your new East Valley home.
Both A.j. Brown & Jeffrey Nelson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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