Questioning your hiring and firing policy.

I’ve never been in a position to be hiring or firing a lot of people. I come from a background of small teams, although I always knew there was someone above doing the nasty work.

I recently had a discussion with the owner of a small business that wasn’t going too well. He explained to me that to save money he had put off his highest paid staff, the good staff. Even though I’m not up to date on the latest corporate thinking and trends, I thought this was odd.

During the good times it was these staff that moved the company forward. Outstripping the competition. Setting the pace. Always pushing for, and making, better gains.

And when things got tough, it was these same staff members who put their heads down, bums up, and worked to hold the company together. They waited patiently for things to bounce back when conditions picked up again – which they knew would happen.

But he sacked these ones. And kept the bad ones. The ones who would drag his business down even further.

I had a similar discussion this week with a client who was struggling to manage her trading business.

The fear of the better performing stocks reversing was so great that she sold them and hung onto the poor ones hoping they would miraculously turn around and come good.

Trading is a business. Successful businesses are not based on hope and fear.

Nurture the stocks that are going well. Cut the bad ones.

Hope and fear can easily be overcome by having a plan and following a well tested strategy. A proven trading plan will alleviate anxiety and stress.

You can join Tradesmart New Trader’s Blueprint currently free for 14 days (offer may change) and learn to build a trading plan to suit you – suit your personality and risk appetite.