Archives of “success” tag

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Keep the right mindset, believe that you are going to be a winning trader.

  
  Education
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The road to trading success is not an easy one, in fact, it can be painful emotionally, mentally, and financially, if you do not know what you are doing, this is why only 10% succeed. There will be countless times you will face losing trades and failures that if you are not committed to success in the long term, you’ll succumb to negative thoughts of failure and defeat and just quit.

In order to develop persistence and eventually succeed in your trading, always maintain a belief in yourself and your eventual success, regardless of your current account situation.  Keep your thoughts focused on doing the homework needed to take you towards your goals.  Avoid negative thoughts and feelings for it will ruin your concentration and persistence. Focus on where you are going and believe that only time stands between you and your trading goals. The power of this belief will surprise you.

Reason For Trading Failure

  
  Education
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bellaquote

The quote above is from Mike Bellafiore’s  The Playbook: An Inside Look at How to Think Like a Professional Trader.

Unfortunately, too few make it in the trading business, not for lack of desire or want for success, but for ignorance of what is necessary for success.  Successful trading is not about predicting the future but about managing it.

If you find that each day your time is consumed with searching for the next great indicator or a combination thereof or with the endless search for the best time frame to use, then you are trying to predict.  If, on the other hand, you focus on a specific, well-defined price pattern for entry and exit on a specific time frame, allowing the price to dictate your future action (win, lose, or draw) then you are managing the future.

The former is a “path to trading failure”; the latter the road to success.

 

Beyond Pattern Identification

  
Analysis, Education
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What does it take to be successful long-term? Two observations:
“The most successful market participants find a limited number of patterns that have favorable odds of success and repeat the trading of these often, with moderate risk placed in any trade. They win by acting as the house, not as the gambler. They win by taking consistent bets and harvesting returns from favorable odds. They don’t win by making the big bets and big scores. There is remarkably little drama– surprisingly little wizardry–among those who sustain success in financial markets. In the words of Lopez de Prado, their trading desks are more like laboratories than the platforms of gurus. Diversification and disciplined execution explain much of their returns.” – Brett Steenbarger

“Investing is kind of a game of connecting the dots. The nice thing about it is the longer you are in the business, as long as you are intellectually curious, your collection of data points of dots gets bigger and bigger. That is where someone like Warren is just incredible. He has had a passion for investing for well over 70 years. He started by the age of 10 or 12. He keeps building that library of data, the ability to recognize patterns in data. Being a successful investor you need to be hungry, intellectually curious, interested, and read all the time. You need a certain level of randomness in order to connect things that might give you an insight into where a business is going in five years that somebody else might not see.” – Ted Weschler

Why Trading is Most Difficult Job in the World

  
  Education
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How many guys do you know who can accept being wrong?

How many guys do you know who can be wrong and lose money?

How many guys do you know who can be wrong. lose money and not feel bad?

How many guys do you know who can be wrong, lose money, not feel bad and reverse their position?

How many guys do you know who can be wrong, lose money, not feel bad, and reverse their position quickly?

Don’s point is that trading requires an unusual combination of emotional resilience (the ability to tolerate being wrong) and mental flexibility (the ability to use losses as information and quickly change one’s position in the markets).
Many people have a need to be right. That makes it difficult to quickly accept losses, and it makes it especially difficult to flip one’s views. The best traders don’t have a need to be right, and in fact they readily admit that there’s many times they’re wrong.

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