Rational Trading Over Emotional Instincts

In the current geopolitical landscape, the intricate dynamics between major powers like Russia, China, and Saudi Arabia can lead to various economic threats against the U.S., including currency manipulation, cyber attacks, and shifts in treasury purchasing behavior. These factors contribute to inflationary pressures amid existing economic vulnerabilities such as national debt and government spending. Despite widespread complacency regarding inflation, historical trends indicate sudden shifts can occur, as seen in the late 1970s. Long-term success in trading hinges on the ability to detach from emotional influences and maintain a rational perspective, especially in a volatile environment dictated by herd mentality. Understanding fundamental reasons for entering trades and avoiding the fear of missing out (FOMO) can safeguard against common pitfalls, enhancing the likelihood of survival in a high-risk industry.