Some people live in a universe of scarcity. Their underlying view is that resources and opportunities are limited. To the person who lives in scarcity, what one has must be hoarded. The worst thing one can do is miss an opportunity, because--the reasoning goes--these only come around rarely.
Jealous people live in a universe of scarcity; they dare not allow their loved ones to share affection. Anxiety is the hallmark of the scarcity mindset; fear of loss is a driving motive: fear of losing what one has, fear of losing out on possibilities to get more.
Other people live in a universe of abundance. Their underlying view is that resources and opportunities are unlimited. To the person who lives in abundance, what one has must be shared, because in mutual sharing, everyone is enriched. The worst thing one can do is become attached to something that doesn't work, because--the reasoning goes--there are so many other possibilities around.
Daring people live in a universe of abundance; they can afford to dare, because new challenges and opportunities will always present themselves. Quiet confidence is the hallmark of the abundant mindset; pursuit of values is a driving motive: maximizing positives, not minimizing threat.
Two men lose their jobs. One views himself as eminently skilled and employable; another views a tight job market. Who will be stressed? Who will jump at the first job offered? Who will wait for--and achieve--the right opportunity?
Two traders watch the market. One sees volatility and plenty of market moves; she waits for the market to come to her. Another sees opportunity as limited and is focused on making up for losses. Who will be stressed? Who will jump at the first market move? Who will wait for--and achieve--the right setup?
A permabear is one who raises psychological scarcity to a life philosophy.
There are many permabears, even outside finance.
Open Source is a celebration of abundance. As is Web 2.0.
Scarcity leads us to hang onto jobs, for better or for worse. The entrepreneur thrives on abundance: One startup fails, another soon follows.
The fear of missing out, the fear of losing money, the press to overtrade: could any of these things exist in a universe of abundance?
What good does it do to teach new trading and self-help methods to one who remains mired in scarcity?
The wise trader told me that there are only two types of trades: winning trades and trades where you pay for information.
You sell the market, it won't go lower. You quickly take the small loss, and flip the position to ride the upside. A small price to pay for information, for a wise trader. Wisdom means that even one's losers provide opportunity.
Opportunity in abundance.
Reflections on Life and Markets