I’m going to present to you an interesting concept of two seemingly unrelated things and how they actually are related in theory. The stock market and the ups and downs of life. We all go through ups and downs in our life, but so does the stock market. This will give you a visual representation of the ups and downs in your own life that can help you understand them better. Let’s talk a bit more on the specifics of how they are related.
The stock market will fluctuate up and down, depending on the volume of people buying and selling. Institutions trade the stock market that moves the price. And individuals also trade and even invest for long term growth. But what if a company comes out with bad earnings or a failed product? This often makes people lose their trust in the company and will sell their position, causing the price to plummet. On the contrary, buyers will be happy to purchase when a company is doing good things and make positive headlines and reporting positive earnings.
Switching over to the ups and downs in our life, we often feel good about life when things are going well. When we have our finances in order, when people truly understand us and treat us well, and when we have great things happen to us. However, there are times we are not doing so well, maybe for a few days, weeks, and sometimes years.
How does this correlate with the stock market? Well, let’s look at the chart to get a visual representation of the stock market and your life.
This is a chart of a daily time frame of the Dow Jones futures. We can see the huge crash it had in late February due to the global panic. It took a month to reach a support and turn back around. During this month of panic selling, it reached a level that it was not at since late 2016. So, one month erased over three years worth of gains, just like that. But even though it’s continuing to go back up, it has not reached where it was before the crash, at least not at the time of writing and recording this in July. Also notice how prior to the panic the bars were small and then suddenly got huge during the panic selling. This indicates volatility and stocks can move drastically in either direction.
Are you seeing it yet? How this correlates with your own ups and downs in life? Well, when we get angry and upset, those who are the most emotional and unstable will have a drastic change in their personality. They may be stuck in a depressive state for days as they seem to be getting worse. This is indicated on the chart by the panic selling – letting emotions control your behavior. Sometimes you can regress so easily because your vibrational state changes drastically.
There are other elements to this that can give us a graphical representation of the ups and downs in life. Can you spot them?
Prior to the global panic, the stock market was a bull market, meaning it has a clear upward trend. However, it didn’t take long for it to become a bear market, meaning the trend is mostly downward and people are selling more than buying. It took a massive amount of buying volume to start to reverse the trend. This is indicative of your life because once you have enough time to get through whatever it is that makes you angry or upset, you begin to get better, but it often takes a massive force to get things into motion, indicated on the chart by a large green bar at the bottom that begins to reverse the trend.
But there is one more key thing to look at. If you notice in several spots that when it moves too much in one direction, it has a few days where it does the opposite. This is called a pullback or retracement, which is defined as a temporary reversal in price action. This is what creates the zigzag design you see on stock charts. As long as it is making higher highs and lower lows, then it’s in an upward trend.
This too is a graphical representation of your own struggles and the ups and downs in life. When angry and upset, you’ll have some days that are better than others, but the issues have not been resolved yet and you’ll fall back even harder. Same when starting to get into a more positive frame of mind. You will have days that it will be worse than the days prior. But, the trend is important. It is normal to have a few bad days after many good days because not every day can be perfect. Just think about and look at the overall trend. Even draw your own chart of how you feel about your life that is similar to the stock market chart. Strive to make higher highs and lower lows in your life and what you are struggling with. When faced with resistance, force is needed to break through it.
If you look at the overall trend of the Dow Jones futures, going back nearly a decade, you can see the trend is clear. It’s an upward trend that is great for long-term growth. Remember this about your own life – that even though there are times you may struggle and revert to bad habits and inability to properly cope, your overall trend in life is a positive one. You are always growing and learning, so weeks, months, and even years may not be great for us, but we can bounce back and become stronger than ever before. Remember this graph and use it as representation of your own life, and you’ll find just how accurate it is.
If you are interested in trading the stock market and investing, I highly recommend the two platforms M1 Finance for a long-term dividend based portfolio, as well as Webull for swing and intraday trading. By using my affiliate links, you can get $10 in M1 Finance and free stocks in Webull valued up to $1,600. You can only get these when you use my links!
Let me know how this works for you. Have a great day!
Such a strange concept, but one I thought of when looking at the chart of the Dow Jones futures. I began to relate this with my own life and thought, “This is just like life! There are ups and downs and even times where things get really bad. But overall they improve and we heal and get better.” Once I realized this, I had to get the info out. As someone who is fascinated with the stock market and trading it, as well as investing, I thought it was great to discuss how it can be used as a graphical representation of how our life is.