THE KEY TO TRADING SUCCESS
What is the key to trading success? Generally speaking, what’s the key to success in any field? Well, that’s what everyone would like the answer to. We’re living in a world where the gap between the have and the have-nots is becoming wider and wider. 5% of the world’s population holds the most wealth while 95% live a life that’s a constant struggle for security.
What just is it that separates these two groups? Is it luck? Are they more special than the rest? Are they maybe more intelligent or more destined for success? The answer is none of the above. There’s nothing that makes a single human being too dramatically different from the rest of the human race, no matter how successful or wealthy they are. Unless they inherited their fortune, they got to the place in life they’re at because they completely set their minds to it.
And guess what? It’s the same human mind, more or less, that you have. So, what’s stopping you from achieving that same success?
CHARACTERISTICS OF SUCCESSFUL PEOPLE
There are a few specific characteristics that defines truly successful people and you must be willing to integrate these traits into your approach. The first is the ability to take action. Successful people understand that, although good things come when you wait, you can’t expect your wildest dreams and goals to just all out of the sky. You have to actively and aggressively pursue them. The second is how you educate yourself on your field. You will only get ahead in your industry when you know everything you can about it, becoming more skillful through becoming more knowledgeable. The third and last quality is, perhaps, the hardest of all: the willingness to fail.
There can be no success without a series of failures and, sometimes, in spite of your determined efforts, you might not get exactly what you want. But, you must have the persistence and vision to push ahead anyway. (Tweet this)
HOW TO ACHIEVE TRADING SUCCESS
Now, you’re here because you want to achieve trading success. So, how can you apply these three characteristics of successful people toward the trading industry?
First off, taking action is probably the easiest characteristic to express in trade. Opening a trade account nowadays is rather easy and the process of trading is quite straightforward. But, this is where the education part comes in. You’ve got to be willing to dedicate the requisite amount of time to learn all that you can about trading. That’s what this blog is for, after all. Giving you the tips, insights, and techniques you need to improve your approach to trading. It’s not enough to simply be a passable trader. You must be willing to become better and better, ensuring your trading success.
But, your ability to fail is what’s going to break or make you, regarding your trading success. Failure serves as a challenging test, pushing you to prove your mettle, your grit, and just how badly you want whatever it is that you’re chasing after. Encountering failures throughout your journey as a trader, particularly in the beginning, should only serve to make you want it more and bring you more clarity regarding why you want to do this career in the first place.
The difficulty of experiencing failure is just because we’ve all been conditioned, from an early age, to not fail.
We’ve been taught by our society that it’s unacceptable and humiliating, instead of being told that it’s a necessary part of the process of pursuing success. Therefore, many people live their lives with the idea that success means not failing. This is what prompts so many individuals to simply throw in the towel when faced with demanding setbacks, obstacles, or losses.
Yet, your trading success will be very dependent on your ability to take losses and keep moving forward, not deterred for long about your failure.
However, this is never going to be the easiest thing to do, no matter how experienced you become as a trader. It’s certainly been a lesson that I’ve had to learn. I have a very competitive personality, which made the idea of taking losses, when I first started trading, a hard one to accept. It got to the point where I even considered quitting the business because of this aspect of it. However, I’m glad I didn’t and I stuck to it. To this day, I dislike losses but the trades I take come with little risk, so they don’t impact me much, in the end.
However, let’s not go too far. No one wants to fail all the time and no one should have to. Many small losses can have a strengthening effect on the mind but taking a large loss can weaken your mind, as well. So, let’s say a person took three trade losses. It can be painful and uncomfortable but, still, the person might manage to keep at their job and continue pushing toward trading success. But, that fourth loss in a row would have a very devastating effect on the person, if they were a part of the 95%, provoking a strong emotional response in them full of anxiety, desperation, frustration, and/or insecurity, tempting them to just quit trading altogether.
In truth, four straight losses could possibly even tempt a member of the 5%, even if it took longer for them to react. So, is there some sort of formula for trading success, creating as few losses as possible? I’m glad you asked because, yes, there is.
THE MAGNET STRATEGY
I call this strategy The Magnet. It requires you to know what the expected success rate will be of your trading strategy. The favorably successful system is a hit rate of 70%. So, clearly, out of 10 trades, 7 will be successful with this rate. Great odds, right? Well, let’s just see how likely it will be for you to have a losing streak of four. In order to do this, you take the losing rate of your trading system to the power of four. In the aforementioned system, the losing rate is 30%. Therefore, 0.3^4=0.0081, which is 0.81%, meaning this is your probability of getting 4 losing trades. That’s almost 1 out of every 100 trades, which might seem minuscule but is an important thing to keep in mind to prepare you for the future.
The Magnet can be used for you to solidify your income, through this simple formula, allowing you to make as much money as possible with as few losses as possible. I want you to become a part of the 5% so click here to learn how to further your trading career.
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