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Friend or Foe?
By Blake Young |
The world is full of "us versus them." |
For some people, an enemy, or at least someone to blame, is their fuel. |
This concept has occupied my mind a lot over the past couple of weeks, especially in the geopolitical sense. |
Honestly, I could easily dissect this concept endlessly. And I may explore other branches at a later date. |
But for this week, let's set aside the political and human nature aspects and talk about water… |
…as in H2O. |
Is it your friend or your foe? |
Perhaps you struggle with swimming or a traumatic experience, now plagued with anxiety any time you approach a swimming pool or large body of water. |
Maybe you just don't want to get your hair wet. You could be like my dog, who acts like bathing is torture. |
In these cases, water becomes a foe—something to be avoided. |
But maybe you're like me and connect water with adventure. |
Nearly all of my favorite activities center on the water: swimming laps, snorkeling, boating, and skiing. |
For me, water is my best and most enjoyable friend. |
Neither perspective is 100% accurate. |
Even those who fear water can't live without it. We need it to stay alive. We drink it, clean with it, and grow our food with it. We must have it. |
And even water lovers should respect water as a dangerous force of nature: waves and typhoons, drowning, property damage from even the slightest trickle where it shouldn't be. |
During the summer, water allows my boat to float on recreational outings. In winter, water can crack the engine block if I fail to winterize it. |
Yet, water isn't friend or foe. It's just…water. |
We have to respect it and use it properly. It is a tool and a resource. |
Unused, we get no benefit. Misused, we can suffer deadly consequences. |
Instead of loving it or fearing it, we should understand it for what it is. |
Trading in the markets is no different. |
You may have instruments you love to trade or hate to trade, stocks you despise, and ones that sing to you. |
Maybe you're fond of specific order types or derivatives. |
Options, futures, forex, stop losses, limit orders—any tool in the market is neither friend nor foe. |
You can't let fear control you just because you nearly "drowned" trading a certain asset or way. |
And if you made oodles of cash in one ticker, it doesn't make it your friend. |
Just because it "feels" like the market hits your stop losses right before the stock ripped higher doesn't mean you should give up on protective orders. |
Most things in life simply are what they are. |
They don't need to be feared or fawned over as friend or foe. |
We need to understand them as tools and resources. |
Only then can we employ them properly and avoid misuse. |
None should be feared; all should be respected. |
We can stay safe and have fun—both in the markets and on the water. |
Blake Young
Senior Market Strategist, TheoTRADE |
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