The importance of success in succeeding at trading.

I can’t even begin to tell you how many times I have failed.  I will fail tomorrow and the next day and hopefully I will have an opportunity to fail till I am dead.  Failure can be an important learning tool.

Different shapes and forms.

Failure comes in all different shapes and forms.  The distance you fall after a failure,  time it took to get to the failure,and whether you get back up determines that shape and form.   I realize there are a million posts on why failure is important but success is important, especially in trading.

Failure is different in trading.

Failure/losing in trading is not the same as failure in other contexts.  What is working right now is always changing. What happens to many traders is that they waste money until their system is working again or they run out of money before it happens.  I believe in having a process so you can adapt to that change.  When you find something that works continue to do it till it does not work.  A 100x easier said than done.

Trading is gambling for some.

Trading is not easy because things change just enough to throw everything off.  If you are not willing to change, trading does become gambling.  I have seen many traders make it because of the market and be gone the next month. The great thing about struggling or learning from those who have struggled is that they were forced to create a process to manage this change.

Always playing catchup.

Many traders are just a a few steps behind.  They will make just enough to keep them going. The market continues with some stability allowing the trader to close the gap.  But they are tied to a strategy and the gap will eventually widen again when the change happens.

Being in the right position.

Getting yourself in the right position is a huge portion of becoming a success.  Another part is making the necessary changes.  Those that depend on a process and not a strategy are giving up instant success for long term gains.

Here are two tips:

Consider the process.

Learn as much from your losers as you do from your winners.

Failure is important in success but do not overlook the importance of success in succeeding.

We would really appreciate your feedback, if you like, hate, or think we are full of crap. Please leave a comment, a voice mail (312) 725-9121, email info @ traderhabits (dot) com or twitterstocktwitsyoutube and facebookSubscribe to Traderhabits by email or to newsletter.

  • “Those that depend on a process and not a strategy are giving up instant success for long term gains.”

    What exactly are you trying to say here? I think it’s important but not sure about your intended meaning.

    • Trading and learning to trade are not that different. Two traders with different objectives. One is willing to be told when and where to trade and the other is learning how to trade. The short term risk, in theory, is less with being told. If done right you can be told what to do and learn how to trade. But you are learning in the context of someone else and when you remove their context you can get in trouble. But at the same time if you learn to trade the first bit can be rough and you may run out of money before you learn. That can be the high cost of free.

      You saw what happened when people could not rely on brokers anymore. That is the strategy. Traders were able to adapt even without the help of the brokers. I will write a longer post about this.

  • Pingback: Remix: 10 Rules for Rookie Day Traders | traderhabits.com()

  • Pingback: Three things to make trading less hard. | traderhabits.com()

  • Pingback: Accepting responsibility for your good and bad trades. | traderhabits.com()

5 Responses to The importance of success in succeeding at trading.

  1. “Those that depend on a process and not a strategy are giving up instant success for long term gains.”

    What exactly are you trying to say here? I think it’s important but not sure about your intended meaning.

    • Eradke says:

      Trading and learning to trade are not that different. Two traders with different objectives. One is willing to be told when and where to trade and the other is learning how to trade. The short term risk, in theory, is less with being told. If done right you can be told what to do and learn how to trade. But you are learning in the context of someone else and when you remove their context you can get in trouble. But at the same time if you learn to trade the first bit can be rough and you may run out of money before you learn. That can be the high cost of free.

      You saw what happened when people could not rely on brokers anymore. That is the strategy. Traders were able to adapt even without the help of the brokers. I will write a longer post about this.

  2. […] Agree, but the role of a journal is to be able to make changes and note the reaction to the changes. I think it is a huge mistake to not learn equally from wins and losses. […]

  3. […]  They are always fighting each other. Losses makes you want to ignore the learning and not losing makes you think you don’t need […]

  4. […] If you do not take responsibility for your trades you will miss the guaranteed return on the trade, the feedback.  Once again, what is the point of learning if it is out of your control.  Having knowledge will do nothing to affect the outcome of the trade if you do not take responsibility.  This is also important for a win. […]

The services and materials provided should not to be interpreted as investment advice, an endorsement of any security, commodity, future, or personal investment advice, or an offer to buy, sell, hold or trade futures, options or commodity interests or a recommendation to buy, sell, hold or trade futures, options or commodity interests. You assume the entire cost and risk of investing and are solely responsible for any and all gains and losses, financial, emotional, or otherwise, experienced, suffered, or incurred by you.

Read previous post:
Precious metals: The “does this make me look fat” debate.

I am staying out of the precious metals debate for two reasons.  I do not know enough about precious metals...

Close