It’s hard to forget the past, isn’t it? Especially when all we remember is the pain and anguish of a certain time frame. Loss of a loved one. Separation. Child sent to battle. Illness. Loss of a job, house foreclosure or even loss of significant money. We know pain longer than pleasure, hopeful not to repeat but understanding the inevitable happens. It’s how we move on from such events and move forward that makes the difference.
You saved and saved, built a nice nest egg, being disciplined and risking capital smartly with an allocation to equities, bonds, real estate and gold. You did it right, or thought you did. Then we had 2008. A financial calamity not seen in nearly three generations. It was a disaster of biblical proportions. Did you get hammered? If so, do you live in fear of this repeating? Did you take the advice of sages who told you to continue buying all the way down, it’s the bargain of a lifetime, rather than being patient and waiting for a signal? It’s fresh, too. Less than three years removed from the carnage, our economy and the world is trying to cope and recover. Many are homeless, many more are jobless and without basic needs. It’ll be years until the recovery is complete, maybe a generation. We live each day wishing we did something different – if we could only change the past, maybe ONE little thing that could make it all better. We think; we ponder; we dream. Yet, none these are productive for our present and future. Perhaps learning from the past is far better than re-living it.
Trading and investing take on great risk, the outcome unknown. I have had my share of losses and wins in the past, yet thinking about those experiences really does not help me. Oh, it drives the emotions along the spectrum, but I cannot make a clear decision about today and the tomorrow by thinking about the past. Make a mistake? Learn from it. Take too much risk? Cut back on it next time. Didn’t take profits because you were too greedy? Change your mindset.
Bottomline – We cannot make good decisions for today and tomorrow by worrying about the past. We can’t change the past but can shape our future. Don’t try to make up for previous losses with some vengeful trade. That is a danger sign. Each new day, new trade is a unique experience. I leave you here to think new and fresh about yourself, your trading, your life. A few quotes that you might find inspirational.
If you worry about what might be, and wonder what might have been, you will ignore what is. -Anonymous
The best thing about the future is that it comes only one day at a time. -Abraham Lincoln
Pile up too many tomorrows and you’ll find that you’ve collected nothing but a bunch of empty yesterdays. -The Music Man
If you are still talking about what you did yesterday, you haven’t done much today. -Anonymous