August 6, 2018

Successful trading is about learning to deal with failure.

Successful trading is about learning to deal with failure. That's a psychological and emotional issue that you're going to have to contend with for your entire career. Not addressing it creates a blind spot.

You should anticpate losing with greater frequency than winning. If you have a thing about needing to be "right" all the time, trading is not for you. 

Your goal should be to make gains over losses over a finite period of time that provides you a balanced lifestyle. Working 90 hour workweeks is not sustainable.

Spending all day in front of your computer staring at charts will neither make you lose less frequently, nor lose smaller amounts of capital, nor give you more control over the markets.

The best you can do is have an ethos you can replicate. You cannot harvest cash from the markets just because you have a system or know how to read a chart. You must become comfortable with probabilities and expected values.

You should view the market as the most cagey person you've ever met. It will say one thing and do another. It will be unreliable. It will seem to make you promises and break them. It will cheat on you. It will talk behind your back. It will agree to meet you at a certain time and place and then never show up. Get used to it.

All trading systems look good on paper. You need to have the right psychology in order to both deploy them and stick with them...and you won't know that until you begin putting capital at risk

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