Patience is important not only in waiting for the right trades, but also in staying with trades that are working. The failure to adequately profit from correct trades is a key profit-limiting factor. Quoting again from Lefevre in Reminiscences, “It never was my thinking that made big money for me. It was always my sitting. Got that? My sitting tight!” Also, recall Eckhardt’s comment on the subject: “One common adage … that is completely wrongheaded is: You can’t go broke taking profits. That’s precisely how many traders do go broke. While amateurs go broke by taking large losses, professionals go broke by taking small profits.”
Archives of “failure” tag
rssPerfect Failure
Subject not many like to talk about, but dealing with failure and transforming it into something better, more meaningful is an art any trader has to learn…or get out of the kitchen.
Below is one of the best presentations on this subject, the place and way of doing it a little eccentric (may be), but it hits the spot and target audience perfectly while contradicting cliché “Once a loser always a loser”.
Without further due:
Paul Tudor Jones – Failure Speech June 2009