The market loves to dish out lessons. Trading growth, essentially, comes down to how long it takes you to learn from those lessons.
In an ideal world, you will learn these lessons from a mentor, coach or from some other educational source. In this same ideal world, you will heed and internalize these lessons… you endeavor never to make them yourself.
But this is not an ideal world. We are humans, and humans are not perfect. As humans we will make mistakes. And on top of our mistakes, the market will teach us lessons.
If we are ignorant and stubborn, if we refuse to accept the message the market is trying to send us, it will be very difficult to improve our trading.
An example:
You trade too big… your position goes against you… now you’re down too much so you decide to ignore your original stop, hoping you can get out at breakeven or better. But it keeps going against you… in the end you can’t take anymore pain and so you decide to close the trade for a very big loss.
There are so many lessons to be learnt from this, but it’s up to you whether you learn from it or not. It’s up to you whether you grow and improve from something like this. If you continue to risk too much, chances are that you will repeat the same thing again.
Now, let’s say you decide you don’t want to experience the same thing again… you decide to risk less than before. All of a sudden it’s easier to adhere to your stops, it’s easier to manage your trades, and so you don’t have big drawdowns anymore. That’s you growing as a trader… that’s you getting one step closer to trading success.
Finally:
The market will dish out the same lessons over and over… the faster you learn from them, the faster you’ll grow and make a success of your trading.
Thanks so much for reading. Hope you and your loved ones are well and safe.
Thanks and Regards,
Trading SOS SOS