The Big 5 for Life is a book about business leadership so how can it possibly help you on your financial investment and trading journey? You are the CEO of your financial strategy and here are three valuable concepts to help you.
Your Trading Museum
Imagine if someone built a museum of your life which contained all your memories and experiences. There would be a lot of different rooms but the one to I want to visit is the one filled with all your trading and investments decisions.
What does it look like? Are their lots pictures of you receiving large dividend checks from companies? Is it full of share price charts that look like the cliffs of the Cabo Girao the highest cliff in Europe?
Alternatively, is it mostly pictures of you with your head in your hands handing out cheques to your broker.
Right now, I would be uncomfortable showing people round my exhibition. That applies to both the trading and investment sides of the room.
Imagine if the afterlife was being the tour guide in your own museum. If I had to keep talking people through these sorts of investments for all eternity that would be my version of hell.
From now on my trading museum is going to be a place I want to visit. How am I going to achieve that?
Your Purpose for Investing
A key point in the Big 5 for Life is knowing your Purpose for Existing. It is the old adage of ‘What makes you get up in the morning?’ repackaged.
What is it that you really want to achieve with your trading and investments? What is your Purpose for Investing (PFI)?
My PFI is: Create a financially safe future for me and my family so we are free to make more meaningful choices. i.e. Make sure we have enough money to do what we want, when we want.
Every time I press the trigger, I ask myself, ‘Is this trade or investment going to help me fulfil my PFI?’
What are your Big Trading 5?
Think of 5 things in life that you want to achieve before you die. When you enter your museum for the last time and look back, you want to be satisfied with what you did with your life. It is really just another form of setting life goals.
My Big Trading 5 for Life are:
1. Make a profitable automated trading strategy
2. Unearth a 100 bagger
3. Never fail to effectively access the risk
4. Every week read a book
5. Yearn to learn something new everyday
My Big Trading 5 make the acronym MUNEY. Every day I ask myself, ‘Is what I’m doing going to help me make MUNEY?’
Take number 4. Every week read a book. Obviously I would say that given the name of this website. However, I am going to be trading for the next 20 years, life willing. If I fulfil this, I will have read 1000 trading books. Surely, I will have cracked it by then!
Is what you are doing today going to help you achieve your Big Trading 5 for Life? If the answer is NO, then it is time to make some changes.
Check out our Library to find the right books to help you.
Useful Equation C+E<O
‘If you want to be a CEO, you have to be able to figure out if C+E < O. C is cost, E is effort, and O is output. Most people get hung up on the C and E and never look at the O. Those people suffer from Leftsideitis- they only focus on the left side of the equation.’
Do not be put off by the thought and the effort of learning to trade or improving your trading given the rewards are much greater.
Conclusion Big 5 for Life
You are the CEO of your trading and investment life. You make the decisions.
Make sure the trading and investment decisions you make along the way are aligned with helping you achieve your biggest goals.
If I succeed in my Big Trading 5 for Life, I will fulfil my Purpose for Investing. If I do that my trading museum is the one in which I want to be the Tour Guide for eternity.
You can follow my progress and see all my trades and investments here
Other Books by Same Author: The Why Are You Here Cafe: A new way of finding meaning in your life and your work offers readers much food-for-thought and a new and original way to see themselves and the world around them.
Suggested Reading: Trading in the Zone: Mark Douglas uncovers the underlying reasons for lack of consistency and helps traders overcome the ingrained mental habits that cost them money.