“Amateurs want to be right. Professionals want to make money.” Common Saying
==== Hi all, hope you enjoyed your weekend. I came across this quote while reading and preparing for this week of trading. This quote is the one that splits the winner from the losing traders. Let me remind you that in this business, just as in any business this Statistics rules us all. 90% of all start-ups or businesses go bankrupt or stop operations in the first 12 months. Sounds disappointing but it is what the data has historically collected. Ok, you might think, if i “survive” the first year I’ve done it, well there is more.90% of all business go bankrupt or stop operations with the next 5 years! The same data! So only 10% “survive” in the first year and in the 5 year cycle. That is why it common to see investors participate with more conviction in a business that has a profitable business model that has shown five years of playing the game successfully. ‘Amateur what to be right while pro’s want to make money’ might sound a bit materialistic or even greedy but the prinicple is very very important. We have to look at our trading just like any other business you see out there. Having the discipline and doing your homework! constantly,preserving & growing your capital is the center point. Our opinion , judgments can be most of the time detrimental to our business. Such as, staying with a losing position, to much risk per trade and so many other situations.Our trade is to make money and at the same time enjoy the process, no? Periodically I make a short self-report if im trading and managing my finances in a professional manner. This helps me spot where i can eliminate or improve my day to day operations. I say a lot and will say it all the time, If my trading is rule-based, mechanical, risk set up and even boring then im doing well, the contrary if im very excited, changing my lot size , my risk tolerance and doing crazy stuff i have a business operating problem! The simple way for me to see if I’m on the right track is to ask myself, can I forget about the position and sleep at night and live a normal life? you know the answer.D.F. ==== Hope you enjoyed some of my comments, What do you think about this quote in your trading/industry? What good/bad experiences have you had? any tips or suggestions you want to share?