Trading is often compared to performance sports. And why not since both have commonalities in terms of fear, anxiety, confidence and risk taking.
Everyone who enters the market wants to be profitable, but few want to work to consistently make money. They prefer to rely on third party research or take a brokers’ call or pay for some service which gives tips rather than learning the trade. In his book ‘Outliers: The story of success’ author Malcolm Gladwell mentions the 10,000 hour rule. In his study of successful personalities across any field he finds that everyone of them have put in 10,000 hour of dedicated and deliberate effort to achieving their goal. The same rule is applicable to trading. No wonder there are few consistently successful traders.
A quote often repeated by sporting coaches is – your best teacher is your last mistake. One has to learn from their mistake and see to it that it is not repeated. By making all the mistakes one can and learning from it and avoiding it, will finally lead to time when there are not many mistakes left to be made. It’s only then that one can become successful.