Trading Lessons From A Burglar
Burglar (home-breaker) Heh, a person who illegally enters buildings and steals things. This is supposed to be a sensitive article because—I really shouldn’t be promoting the term “burglar” or stealing. However, in life, lessons are learnt from any-where and, trading shouldn’t be different. The good thing is, the lesson can be learnt without absorbing the act. In addition, this article is not going to teach you how to steal—It just absorbs certain lessons from the act and instead, teaches you how to apply these lessons in trading..
A short anecdote. I remember as a child, A man came in—saying, “Your dad sent me to get something”. I mean as a child I was always told, “don’t speak to strangers”. However, this man said “your dad”.. In my juvenile head, I felt he knew my dad. Lol.. I actually let him in. Innocent me, had no idea this was a burglar. I trusted him only because he knew my dad. Anyways, fast-forward.. I was unsettled, So I told the man he should wait in my house, let me go call my dad. Haha! Thinking about it now, That was so dumb. But, I was innocent.
Never knew of robbery or all the bad stuffs happening to people.. Why am I telling you this? It’s because these burglars are smart, manipulative and learning how they think can save you as well. Ergo, I mean no harm.
P.S: I wasn’t harmed. Don’t know what he stole till today.
Trading Lessons From A Burglar – Time Is Of The Essence..
I always here the phrase, “time is of the essence” but I never know what it means. Now, I do. The phrase simply means: Hurry up, act quickly, time waits for no man..
These burglars know that their time is limited. The police might come around or the owner. They make sure they plan everything, from the breaking to entering and exit. They’re smart people. It’s like a game of chess. These guys know how to checkmate your king with 5-10 different end-games. If only they put their talent to good use..
Anyway, as a trader, this is a vital lesson. Most traders don’t even know when they’ll exit, enter, take-profits, or accept losses. Burglars are quick on their feet—so should traders. The market doesn’t stop for coffee or make-up. It’s always moving: even when it isn’t. That being said, as traders, time is of the essence, think fast.
Every Detail Counts
Let’s take a few steps back. When that burglar came to my house as a child, he said, “your dad said I should get something for him”.. I have two questions. Firstly, How does he know my dad? Secondly, how did he know the exact time to come? Okay three questions (haha)—How long has he been planning this?
Judging from that, you’ll agree with me that burglars don’t over-look things. Every detail counts.
He knew what time to come, the exact house, building (my house is actually a three-storey building) and he knew—me. Which is actually the scary part. These guys don’t discriminate between important and un-important. They consider everything.
Therefore, As traders, that is a useful lesson. Every tick in the market is meaningful, the candles, patterns, structures even the little wicks—the market leaves behind.. should be considered when trading.
Know the market! That way: you know when to strike. Again, every detail counts.
Trading Lesson From A Burglar – Take Risk!
This is an important lesson. If not: the most important lesson. We all know these guys (burglars) are big risk-takers. During their missions (breaking and entering), they know there’s a 80% chance they’ll get caught. They however, carry out their plans anyway.
They take risk. However, don’t get it twisted.. Let me re-phrase, “they take calculated risk”.
Since they’ve planned the whole event. They know the future is unknown, so there’s a big chance they’ll fail. Knowing these guys or having experienced them.. They have plans for even when they get caught. Like I said, “They’re smart people”. Unfortunately they chose this career part.
In trading, your risk is everything. Taking calculated risk. Your risk is always going to be your reward.
What do I mean?
If you take a 2:1 trade, using 0.0—you’ll make $20 and lose $10 (that is if you’re trading maybe the Nasdaq100 which is a dollar per pip). Now, if I decide to risk more by using 0.10, I’ll be making $200. But, if my account is little—then that is really dumb, right? Take risk, but be ready for the rewards.
These burglars understand that; Most traders don’t. They blow their accounts and sulk. I mean—what did you expect?
There’s something I told my friend—I said, “The traders who succeed are the ones with bigger balls”..
Read that twice!
In conclusion, You need to put these lessons to good use. First, time is of the essence. Secondly, every detail counts and Lastly, take (calculated) risk. Honestly, I hope you took the sense out of this and left the non-sense.
Note: There’s no good in harming people. Burglars, burglary shouldn’t be condoned. However, use the lessons to improve your trading performance..
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