Have you ever asked yourself from your childhood what you want to become when you grow up and you came up with the idea that you would like to be a successful person (whether it is a Profitable Forex Trader, Business Person, or Employee)? However, when you grow up, you face a solid wall of reality that is hindering you from reaching your goal or you have reached your goal but suddenly an unfortunate event happens which makes you fall? Yes, that is the uncertainty of this world which shows that nothing is safe in this world which I will be covering here.
Radical Uncertainty
From the book Radical Uncertainty Decision-making for an unknowable future (2021) written by John Kay & Mervyn King, I learned that anything and everything in this world can happen which is defined as a mystery rather than a puzzle whereas mystery is something we cannot predict until it happened and puzzle is the event (fortunate or unfortunate) after it occurred can be analyzed.
Unpredictable Event
An example of mystery is the occurrence of the 1998 Asia financial crisis and Covid-19 which we cannot predict until it happened. After that, those two unfortunate events become puzzles and the analysts can analyze the cause of the event so that they can come up with robust safety measures to prevent such event to occur again in the future though the uncertainty will still linger.
What I want to convey here is regarding the psychological condition as humans approaching the forex trading market and not just being a forex trader but also other activities and occupation. Everything that you do has the worst possibility which will be your nightmare. The worst possibility of what you do can be seen below:
- If you are an employee, your nightmare is a layoff
- If you are a business person, your nightmare is bankruptcy
- If you are a forex trader, your nightmare is a margin call (same as bankruptcy) and psychological disruption affecting your well-being
And the list goes on and on.
Solutions?
Is there a solution to those nightmares? I would not call it a solution since mystery is very unpredictable but it is always important to have another plan. Say, if you are a business person, think twice before you spend your profit and wealth lavishly unless you accept the possible consequence of not having strong resilience when tough times come. This means that even if you have become a profitable business person, it would be better to have as much as saving or investment just in case something wrong happens.
Note: I am currently taking a break from trading the forex market which affecting my psychological conditions. I do not know when will I be coming back to the market but I will try to write my experience here whenever possible.
Written by Andre Indratama
Forex Jed Original Content