This is another funny story about trading psychology like the Crowd psychology in the previous article. Today, we’ll go to a restaurant, which is very famous for its Newbie BBQ Chicken dishes.
Unlike the industrial way of raising chickens, the American West is famous for its grilled BBQ chicken. People let the chickens out in the garden, let them walk around so that the meat is firm and tastier. One day, a customer came into a restaurant.
– Yes! The chef hastily ran out
– Mr. Market wants to eat BBQ chicken?
– Yes. Please wait for 30 minutes.
The chef went to the garden, began to throw the rice on the ground so that chickens slowly gathered.
After a while of rolling his eyes to see which chickens are qualified for “meat”, he used a basket (a tool that specializes in catching chickens) and… yup.
The chicken flapped its wings in the basket, trying to struggle. The chef reached in, strangled the chicken, and pulled it out. After feathering and cleaning, BBQ chicken started to be served to Mr. Market.
Do you see yourself in it? Probably not. Now we’re back to reality with Newbie’s story.
One fine day, Newbie surfed Facebook, Youtube, etc. Some money-making pictures caught his eyes. Newbie is curious and clicks to view and join Telegram groups. Here, the group owners began to show off their knowledge, show off their money and how to get rich…
Is it easy to make money? Newbie began thinking. At first, he didn’t believe it. The second time, Newbie started to notice. For the 5th time, he started to learn. For the 10th time, he opened an account and deposited to become a trader. And… he lost all his money to the market.
So what do you think? Are new traders any different from chickens? Are the teachers, experts, YouTubers… any different from the chef? And of course, the person enjoying the BBQ chicken is still Mr. Market.
What is Newbie’s trading psychology?
I know have many types of new trader’ trading psychology like greedy, FOMO, curious, active, confident… Let me go deeper for you to understand.
After surfing Facebook, seeing the newsfeed of friends all talking about Bitcoin, everyone says that coming is a great opportunity for Crypto. Being afraid of missing the opportunity to make money, “chicken” also started to trade Coin.
This type of “chicken” has no knowledge. So when seeing what other people do, he imitates it. As a result, he either gets scammed or loses every penny in his pocket.
This is exactly how the market works. When the price is hot, the media constantly reports with a lot of attractive news to pull money from new people (without knowledge) to the market. Then, they will be “trimmed” gently.
This is the type of “chicken” that you can easily come across. They have the knowledge, know how to analyze and predict, or trade with a Demo account. But they merely have any real profit.
Trading and making money in the market is a psychological game, where the person with bravery, patience, and discipline is the winner. On the contrary, being too active will easily lose money. The “active chickens” like to flap their wings, like drawing charts with indicators, and then fall into a vortex. Find a trading strategy => lose money => try to find another strategy => and lose money again…
This type of “chicken” likes to look at other people’s wallets. They want to get rich quickly. Therefore, when entering the market, they trade continuously with large volumes.
Of course, in the first few trades, Mr. Market “throws the rice”, feeds and fattens his chickens. Then, when the “chicken” has enough weight, it will become a delicious dish for him.
What are you wondering?
Newbie is chicken?
Your question may be Is it true that being a new trader is a chicken?
The answer is that’s right.
You can learn, learn more, have more knowledge. But trading psychology or emotions are the problem in the game of money. Does anyone tell you that?
Let’s think about it. The market as we know it has been around for hundreds of years. Knowledge abounds online. You can find them by Google, by Youtube… anyone can learn. And then, 95% of traders still lose money to the market.
Again, those who think that just learning knowledge about technical analysis, fundamental analysis… is enough to make money in the market, really are chickens.
How to get out of the chicken life?
The answer is money and time. These are the two things that Newbies have to put into the market in exchange for experience. No one can help them but themselves.
No one tells the “chicken” that the game of money is a game of psychology. Whether the price rises or falls, it affects emotions, “Chicken” will gradually lose control, forgetting all the knowledge learned.
Each person’s knowledge and awareness will help them lose less money and time and realize more problems in the process.
In short, if you have the knowledge and experience, you will have a chance to get out of the chicken life. Otherwise, you will forever be just a delicious meal for others.
So how can Newbie make money?
Reply: Let’s become a chef.
Look and do the same as what the chef has done.
– Become a Youtuber, who draws, makes videos to share trading strategies to make money from Youtube.
– Be a teacher or an analyst, who shows knowledge and predict to make money for teaching.
– Become an IB (Introduce Broker), showing off your account and money to have customers register with your affiliate link.
What if you want to become a trader? Spend money and time buying psychological experiences.
Your question should be Why doesn’t any trader show you a 1-year history of trading and making money from Forex?
Answer: For those who can money from the market for real, they do it in silence. They don’t need to do youtube, be experts, or Ibs. They just need to focus on the market and make money.
The game of money is a game of psychology. Newcomers to this market, no matter what they do, will still have to spend time and money in exchange for emotional experiences.
Hope you understand what I’m saying in this post. Love!!!