Failure and Success

I've heard it, I've read it and I've experienced it. To be a stock trader you have to be comfortable with failure as much as you are with success. In other words, accept that there will be losses. There is no perfect system, no analyst, consultant, fund manager, or individual who is going to be right 100% of the time. You will probably loose money more times than you make it. The key is loosing less money than you make.

Losses are a hard hard pill to swallow but as long as you've done your homework on the sector, the stock, the trend, etc. if you have a loss you just have to learn to wash it down and move on. You need to find out if possible why it failed, or if it was you that failed to enter and exit properly or that you didn't do enough homework before jumping on a the leaking ship in the first place. We must learn from our failures so that they help us make better moves in the near future.

The government will only allow you to take a $3,000 investment loss. The rest is on you to learn from bad trades so that you don't make it a recurring action. Failure goes hand in hand with success. Lady luck is great but she is spread too thin as it is. Be accountable for every action both in your private life and in your career. The ultimate opportunity is to learn from your failures so as to continually improve the process so that we can reap the benefit of experience.