Having money and time at one’s disposal is often a bigger problem than not having both. It is during those phases that the mind tends to seek the unnecessary. It is when we invite problems into our life through hot pursuit.
The growing trading culture among millennials and tech-savvy investors clearly is a big problem in the making. What is aiding this? It is the confidence of these newbies in their understanding of technology and their ability to crack complex tech problems. The trouble is that investing success is about solving complex behaviour issues and simplifying our life approach to investing. Online trading easily lures one into a zoned-out space from which there is no easy exit. It takes over one’s behaviour and grows rapidly.
Sample this: online trading is growing at a rate that probably gives even the COVID-19 a run for its money. Everybody thinks it is the ‘cool thing’ to pursue now. This reminds us of the history of newbies in trading. What we remember is not very encouraging. If history is a lead indicator, new traders will be saddled with incurable pain even before they realise what it takes to succeed in trading. Yet, we are seeing hordes of newbies getting ready to adventure in rough weather based on their ability to crack complex technology and information problems easily. This only reinforces the old timer’s belief that history almost always repeats. And newbies emerge in every market cycle with the same adage “this time is different”.
The lessons are waiting to be learnt. It is better to get bored than to get mauled. Let boredom not hurt your wallet.