Attack vs Defense

Just like many traders and investors, the motivation of entering the financial markets is to have the opportunity to make money from the markets in the hope to move our financial status to the next level. Many years back, I have the same objective and motivation to level up my financials.

In order to gain an edge in the markets, I have worked hard in increasing my financial knowledge. I have gone through learnings in fundamental analysis.  I have gone through learnings in technical analysis as well. Over the years, my knowledge have improved. The experience gained through the practical trading in the markets using several instruments have placed me in good stead in terms of knowledge as well as practical application using real money.

Nothing to hide. I have made both winnings and as well as losses in the financial markets. With the so-called learnings after so many years, I did not manage to level up the financial status through the financial markets. Instead the money is from my salary from my job.  Though I have increased my financial status through my salary from my job but that is from a job and not from the investment in the stock markets. This is not what I want. I want to make money off the market and not from a job.

In my later years, I realised my MISTAKE. A huge MISTAKE that I may keep making all through my life if I have not realised it.

Without realising, I have been playing Defense all this while.  I am conscious of what I want. My objective is very clear which is “I want to make money from the market to level up my financials“. However, when I place my money into the market, the focus is not to lose the money and to win. Read carefully. The focus is not to lose. When I have this focus of not to lose, the mentality automatically shifted to defense and I will search for the best ways to prevent my capital from going down. I will search for the best stop loss technique to preserve my capital. Any chance to get out of market to preserve my capital, I will automatically do that.
“How can a team score a goal if all of the players in the team play defense?”
The rationale of defense sounds logical and good. But it does not meet my objective of levelling up my financial status.

How can I level up my financial status if I am focusing on defense – to prevent my capital from depleting.

I am no longer the kind of trader, who is worried about a position being wrong and loses the money.
I am now the kind of trader who looks for opportunities and make sure that I am into these opportunities in order to reach my financial targets.

If they kick one ball into my net, I will make sure I kick 2 balls back into theirs.
And it no longer matters how many balls they kick into my net. I will return double or more into theirs.

This is what I do now and I no longer holds a job
(Thank goodness I realised this fundamental mistake).

 

Defense
What is the use of having best stop loss strategy and not being able to reach your financial targets?
What is the use of having the best indicators and end up making small gains on the stocks (with a big risk on your capital) even though the stocks move in your direction? Unless you are trading in the millions of dollars, a 5-10% gain will be good money for you in each trade. If not, it is necessary to make full use of your money in the best possible way (and I am not referring to using margins). Do note that Scared money always loses.

Attack
I am into attack mode. Not that I am not concerned about losing my capital, I am more concerned about not being able to reach my financial targets. Thus I go into opportunistic trades (with the BIG Money placement) that will have massive movement. And Massive movement moves me closer to my financial targets.

To break one’s limitation and to reach the next financial level and to reach my financial targets:
It is Attack

To sustain current financial level and not intending to go to next level :
It is Defense

Most Traders thought they are attacking. Instead they are defending.
Probably you are not one of them
What is your objective play? Are you actually attacking or defending?