I hope you had a great trading week. Congratulations to the New England Patriots on their six Super Bowl.
Today I will be discussing the idea of Failure. Yes. Not a fan favorite. In life, you will encounter numerous failures, but it's how you react to failure that will mold the individual you aspire to be. As Charles Swindoll says "Life is 10% what happens to you and 90% how you react to it." This quote sums it up in a nutshell. Failures give us our greatest lesson, which helps us learn. Whatever venture you are on, understanding that failure is part of the journey. Recognizing it is the first part, but how to react is the most important. Many individuals give up too early in their journey, because of failure. Individuals think of failure as a sign that is wasn't meant to be. Which is far from the truth. Every successful individual has experienced failure is some fashion, but they kept going. They honored the struggle. Sadly many don't have the Grit to continue on their journey which is the biggest failure. One of the great quotes that came too mind was from Thomas Edison. "Many of Life's failures are experienced by people who did not realize how close they were to success when they have up." Failure is a major point in any long term venture. In my opinion, Trading is by far the most challenging due to the physiological factors that come into play. In trading the only factor is you. You're in complete control, no one is there pushing the sell or buy. Taking responsibility is a key trait of any successful trader. Meaning that understanding your "tilt" moments are apart of the game. Failure is what gives success it's the flavor in the end.
In the Markets you are bound to fail, it's apart of the game. Once you can fully accept this the easier it will be to handle. Many traders believe failure is a sign that "it wasn't meant to be", but that's nonsense. Author of "The Market Wizards" Jack Schwager puts it "Early trading failure is a sign that you are doing something wrong; it is not necessarily a good predictor of ultimate potential failure of success." I strongly encourage you to grab a copy of "The Market Wizards" is a gem full of great information. What separates the Elite Traders from 90% of those who lose is their Mindset. They understand that losing is apart of the game. Most importantly they understand the importance of Risk Management. Simply my maximizing your profits while minimizing your losses. I don't understand traders who expect to win on every trade. That's nonsense. Trading is a life long journey, everyone will move at different paces, but the key is to keep moving forward. Rome was not built overnight, you can't become a Doctor overnight. What makes you think you are going to be a consistent trader overnight. Too many people get into trading because they think it's a get rich quick scheme. Those individuals are part of the 90% of who lose because all they care about is the outcome. Gamblers are what I like to call them. They pick and hold a stock an maybe they will get a winner, but if they lose they blame the Markets. Don't blame the dam Market, blame yourself. Take full Responsibility. When you lose in my opinion that is the best opportunity to learn from. A loss is never really a loss unless you gain some knowledge from that experience. That encounter would go into your memory bank to ensure it does not occur in the future. For instance, having a journal to track your trades is a great tool as a trader. Personally, I have two spreadsheets where I track every trade I make. I go into great detail of the particular trade. This allows me to see the trade in hindsight ( which is always 20/20 ), but most importantly recognize my mistakes. As I mentioned earlier this game is all about odds and probabilities. Like flipping a coin. Head and Tails. A Win puts you much closer to a loss and vice versa. Therefore you never let loss set you back because the odds favor you in the future. Once again I can't stress the importance of Risk Management. It is the primary reason why so many traders lose in the Markets. I don't want you to be a statistic, keep moving forward. Remember you are climbing the Mountain every day to reach the Summit. There will days where you fall back, but remember your still on the Mountain. Everyone's journey will be different, but the end is well worth it. As Mike Bellafiore says " You can be better tomorrow than you are today." Have a great week. I will be discussing why Trading is attractive to many individuals. Along with the main reason they get into trouble.
" Being a successful trader also takes courage: the courage to try, the courage to fail, the courage to succeed, and the courage to keep on going when the going gets tough."
Jack D. Schwager
" Don't focus on money; focus on protecting what you have."
Paul Tudor Jon
Update: This past week has been amazing. Texas State has been amazing. I still am adapting to the new schedule. Trading has been amazing. Time sure does fly by. July is when I began the journey, but I still have a long way to go. I look forward to the many great opportunities down the road. Every day I envision myself on top of the summit, but I must have patience. I am 19 years old, as my Mother always tell me "don't put the carriage in front of the horse." I don't know where I will be 5 or 10 years from now, but I must thank God for getting me to this point in my journey. As I write this it's Friday, February 8, 2019, at 8:35. My parents tell me to go out, have fun with your friends. I respond to her "My desire to be a great Trader, is far greater than my desire to go out with Friends." I am Obsessed with the Markets, and I will not stop learning it's a life long pursuit. The quotes below are ones that came across me in my daily readings. I'd thought I share them you with.