"If you drill down on any success story, you always discover that luck was a huge part of it. You can't control luck, but you can move from a game with bad odds to one with better odds. You can make it easier for luck to find you. The most useful thing you can do is stay in the game. If your current get-rich project fails, take what you learned and try something else. Keep repeating until something lucky happens. The universe has plenty of luck to go around; you just need to keep your hand raised until it's your turn. It helps to see failure as a road and not a wall."
Article in WSJ, by Scott Adams.
Recently, I was reading articles by Scott Adams and the part above reminded me that the principles he was laying, was applicable to a trading business.
He says, that we can't control luck, but we can control the game that we choose to play. It's important to play the game where luck might come to us. Let's think about real life application.
Example: In trading, it's important to be verse in the nuances of the strategy that we use while trading. The details like the best time to trade, stocks that we trade are important. If we know the rules well and follow them 100%, then we literally make ourselves attractive to luck, so that we might find luck more often.
The concept of staying in the game is important too. Losing money is part of the game, but we always have to remember that we have to have tomorrow too. If we lose 100% of our capital, by risking it all, we lose the chance to fight back. We should never put ourselves in the position that we might lose everything. I admit that I made such stupid mistakes, but no more. After couple of hard drawdowns, I am tryin very hard to not let it happen again.
Failure, in trading the fact of losing money should be viewed from the right angle. Losing, as I said is natural to this business, to any business in my opinion. But, the important part is what we learn from it and how we change our behavior after losing money. Small mistakes, will happen, and it's crucial not to let small mistakes grow into big ones.
Article in WSJ, by Scott Adams.
Recently, I was reading articles by Scott Adams and the part above reminded me that the principles he was laying, was applicable to a trading business.
He says, that we can't control luck, but we can control the game that we choose to play. It's important to play the game where luck might come to us. Let's think about real life application.
Example: In trading, it's important to be verse in the nuances of the strategy that we use while trading. The details like the best time to trade, stocks that we trade are important. If we know the rules well and follow them 100%, then we literally make ourselves attractive to luck, so that we might find luck more often.
The concept of staying in the game is important too. Losing money is part of the game, but we always have to remember that we have to have tomorrow too. If we lose 100% of our capital, by risking it all, we lose the chance to fight back. We should never put ourselves in the position that we might lose everything. I admit that I made such stupid mistakes, but no more. After couple of hard drawdowns, I am tryin very hard to not let it happen again.
Failure, in trading the fact of losing money should be viewed from the right angle. Losing, as I said is natural to this business, to any business in my opinion. But, the important part is what we learn from it and how we change our behavior after losing money. Small mistakes, will happen, and it's crucial not to let small mistakes grow into big ones.
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