"No more BS... What have you learned?"
What I learned is that you can give a simple solid proven system to people and they still won't be able to follow it. And that 95% don't have the capacity to make it work.
Take for example the simple solid proven system:
Save 10-20% of you income and pay your mortgage as soon as possible.
If you have a spouse, one partner's income pays the mortgage and the other partner's income are to be used for daily living expenses.
Such a simple solid proven system and 95% of people are not doing it. More likely, if you are reading this (whoever you are), you don't have any savings. More likely you don't even have a budget.
And this is the crucial point:
If one doesn't have any skill in managing their own personal finance, (IMHO) I believe they are already handicapped in their trading. Your own personal finance is a reflection of your underlying skills and emotional quotient regarding with money (and money management).
You see, if you get the urge to shop for pleasure (buying things you don't need), you end up buying things rather than saving your money. You put pleasure first over the necessity... More likely you will break your money management rules. It is the same psychological processes that will occur while you trade. You will end up over trading, over leveraging and uncontrolled greed (emotions)... because deep inside, whether you can admit it or not, it makes you feel good. That's why I also believe that a detachment from materialism is also a crucial point in trading.
So remember: If you can't save 10% of your income in a year, then you don't have the emotional quotient to trade successfully.
What I learned is that you can give a simple solid proven system to people and they still won't be able to follow it. And that 95% don't have the capacity to make it work.
Take for example the simple solid proven system:
Save 10-20% of you income and pay your mortgage as soon as possible.
If you have a spouse, one partner's income pays the mortgage and the other partner's income are to be used for daily living expenses.
Such a simple solid proven system and 95% of people are not doing it. More likely, if you are reading this (whoever you are), you don't have any savings. More likely you don't even have a budget.
And this is the crucial point:
If one doesn't have any skill in managing their own personal finance, (IMHO) I believe they are already handicapped in their trading. Your own personal finance is a reflection of your underlying skills and emotional quotient regarding with money (and money management).
You see, if you get the urge to shop for pleasure (buying things you don't need), you end up buying things rather than saving your money. You put pleasure first over the necessity... More likely you will break your money management rules. It is the same psychological processes that will occur while you trade. You will end up over trading, over leveraging and uncontrolled greed (emotions)... because deep inside, whether you can admit it or not, it makes you feel good. That's why I also believe that a detachment from materialism is also a crucial point in trading.
So remember: If you can't save 10% of your income in a year, then you don't have the emotional quotient to trade successfully.