If a baby falls over when trying to learn to walk do we as adults tell them to stay down and never try again?
Of course not.
We encourage them to get back up and keep trying. They need to succeed. They need to learn to walk. But if they gave up at the first time of trying they would be crawling around for years. They get back up and try again.
The first seed is sown when we become children and we witness the adults around us and the people we look up to giving up after the first attempt.
It’s a cancerous thought which grows and eventually becomes our way of life.
We start saying to ourselves “I wasn’t good at that, I won’t try that again”.
It’s hard to understand why we encourage our children to never give up and to keep trying. Yet we don’t follow our own advice as adults.
In my experience this is the big reason behind why so many traders quit their systems so early, before they have had the chance to see it work for themselves.
We adopt new systems, backtest them and see they have been profitable, then trade them for 3 weeks before abandoning them because it went on a 6 trade losing run.
If you want to learn how to trade you have to stick around. Placing 100 trades and losing 5% over a year is far more valuable than placing 10 trades and quitting.
If you trade for a year you’re developing experience the whole time. You’re sticking to a system and seeing it through. You’re gaining experience that no course can provide you. Experience you can only gain from taking action and taking part. If you quit, or abandon your system you have learned almost nothing.
You are the baby who stays down on the floor and doesn’t get back up.
To win you have to become comfortable with losing. If you are too loss averse, if you fear the idea of having losing trades, you won’t do well. We lose more than we win in this game.
Many entrepreneurs fail at business 4-5 times before they succeed. But ask most of them if they would want to erase those losses, they will tell you no, for it made them who they are today. It taught them. They grew as a result.
Persevering through your losing run, and still being in the game to experience the big winning trade coming along is the key. Most traders never make it because they see the losses as a sign of failure. Or a sign that they don’t know what they are doing. Or they convince themselves perhaps the system has suddenly stopped working.
Some traders just hate the feeling of losing so much they simply can’t stomach it.
In an environment where most people lose, you have to be able to do the things most traders cannot do. You need to take a different path, because the popular route clearly doesn’t work. This is why trading is so difficult.
The bad decisions we make in our trading all stem back to us being human. The fear we feel when we don’t want to open another trade in case it’s another loss. The greed we feel in opening more positions because we want more profits or action. The hope we feel that a losing trade will turn around when the price is telling you otherwise.
These are all normal human emotions.
And this is why trading is so hard to be successful at. You can’t stop these emotions. Going against these feelings, consistently, is a mountain. Where do you even start?
This is why 80% lose. It’s not because their systems are rubbish. Its that they can’t stop their emotions from influencing their decisions. They get in their own way of success.
Only a small % of people can play this game. Some will never make it. Others will quit eventually. And some, the ones who focus on themselves and learn what they really need to know, will make good returns over the rest of their lives.
So the questions is, are you prepared to learn how to do what 80% of traders can’t/won’t do, in order to put yourself in the 20%? Are you willing to apply what you learn? To practice it? To persevere?
If so, you have already taken a first step towards successful trading.