TIME

This is certainly a large topic for a brief discussion but i wanted to demystify this aspect of trading a little bit and most of all get a abundant spin on it while typically time is interpreted as being against us in notions like:"running out of time", hence the hour glass.

And I do not mean this in an artificial way but rather principle based, time is on the traders side!

We spoke in last weeks live call about the principle on how time seemingly gets compressed prior to entry with possibly causing stress that in turn leads to intuition as a resource which consequently leads to poor execution choices since intuition in a counterintuitive environment is always the poorest choice.(The reason why amateur traders always lose rather than walk away with 50/50 results)

And here is where the rubber meats the road for the trader which is the time induced pain of:

"When will I be consistent"

or

"when will the pain end to consistently lose money"

From a glass half full perspective time is on a traders side due to the 8th miracle of the world:"Compound interest"

and Einstein said:

"He who understands it, earns it … he who doesn't … pays it.”

So true when you think of it in regards of life insurances

they simply sit the interest compound phase out and you get dimes on your money compared:

With the staggering rise at the end of the curve it provides the reason as well while employers lure you in for late retirement since it is also peanuts they pay the employee compared to the gains they reap on your 401ks The importance here is to realize that this principle can be easily applied and it doesn't need staggering numbers to impress but rather works on a very basic profit gain that is alluring in itself. For example:

(by Anthony Robbins, www.tonyrobbins.com)

The importance is the to adjust risk based on your age, so for example if you are in your twenties you can tolerate more risk since possible draw downs in your equity curve can still be compensated for with time but once you get older you should reduce aggressive exposure and tend towards wealth preservation rather than wealth creation

A simple representation is the bucket system:

(by Anthony Robbins, www.tonyrobbins.com)

It is the percentage allocation for each bucket that changes through time with your age.

The whole notion here is that the general "get rich quick" notion is non sensical, as Einstein already put a finger on it.

Most end up with no money to allocate towards a time winning model of compound and chasing ego driven dreams that sadly to say do not rarely end up in ruin and despair.

Basic principles like the above mentioned need to be followed to gain momentum in a game where time is on your side!

While all of this is neat and fine and most of you heard it all be fore the true principle time gainer is rather the following:

(principles by Anthony Robbins, www.tonyrobbins.com)

Not only is time structured in its essence for a traders gain in the above picture, showing how ones individual past is the driving force and needed element for success, but it depicts the true culprit of all trading efforts and the reasons why for most trading stays an elusive task if these principle laws are negated.

In short you can not become consistent if trying to solve problems on an ego based pushing hit rates or system development since the true culprit is always self sabotage in execution.

And in addition the true gain is not money, a neutral energy source that allows us to express ourselves in a more significant manner, but the true gain is a process of self directed healing and a true walk towards happiness by cleaning out the skeletons in ones closet and yes we all have them.

In sum while the rare winners in the fast game to riches still arrive as unchanged and typically just spend their money accordingly in harm to themselves with the proof of lottery winners typically ending up poorer than they were prior to their wins, a patient trader who reinvests in his/her growth ends up enriched beyond the monetary gains and especially even without the monetary gains by following a principle based path of self-discovery and fulfillment