Sunday, September 26, 2010

Staring at The Abyss

"Man stares into the abyss, and there's nothing staring back at him. That's when man finds his character. And that's what keeps him out of the abyss." - Wall Street

Just finished Wall Street, not Wall Street 2 and found the phrase rather catchy. Google and want to find out the actual meaning of this phrase. Not too sure I got it right but from the sum of what I collected, here's my shot that make sense to me.

When man looked into an abyss which is usually deep dark, there are either 3 reactions :-
1) fearful which mean evil has scared the he'll out of you
2) attracted which mean evil has tempted you and you accepted it
3) nothing which mean you seen it so many times that you find nothing special or have no feelings about it

If I apply to trading, if I am fearful to trading, it could mean that I have heard stories about people losing money and hence would rather avoid trading in the whole place. However, if instead I find it attractive because of the money, then I may be lured into it and may eventually get destroyed through trading. But if I see nothing in trading just like a Professional Trader sees it as a way that his/her skills can be use to make things work for him/her, then most likely s/he may find it just a common thing to do that he may not even develop any feelings about trading.

Overall, I think the phrase touches on emotions. When you trade, no emotions should be involves. All entries and exits have to be objectives with no emotions attached. Achieving that is like looking into the abyss not feeling fearful or excited.

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