You may feel a surge of confidence when making a trade. "This one is a sure thing", you tell yourself. You have looked at it from every possible angle and every indicator suggests that there will be a substantial payoff if you "play your cards right".
However, that confidence can be shattered in an instant. Some unforeseen event can turn the tide and a trade that was once considered a "sure thing" is now precarious at best.
Should you panic? Seasoned professionals have learned, and often the hard way, not to count on any one trade to amass their fortune or to simply put bread on the table. The true measure of success is profits garnered from successive trades. There will always remain that element of chance. The secret is making a series of calculated, well thought out risks. There will be both gains and losses, but if you weigh each trade carefully, you should amass more profits then losses over time.
Thinking rationally and looking at the overall picture, instead of focusing on the outcome of one trade, will relieve unnecessary stress. You, like many others in the business, may thrive on the initial adrenaline rush when placing a trade. Of course you are "in it to win it". This mentality is needed to stay ahead of the game, but don't place all your energies on the outcome of each trade. Keep a balanced perspective. This is necessary if you want to stay on the playing field. Fight to win!
David McCullough, in his book "1776", described a winning strategy used by those who fought gallantly in the Revolutionary War. The Founding Fathers of the United States did not focus all their mental energy on winning the war. They knew they held only so much control over situations and events. The final outcome of the war was ultimately out of their hands. God (a higher power), destiny or fate, would have the last "say so".
Did that mean they threw down their muskets and gave up without a fight; feeling helpless because they had no control over the outcome? Absolutely not! So, what was their winning strategy? They gave 100% and fought with grace and persistence to the point that they deserved the ultimate victory. Regardless, if they won or lost the war, they would have been at peace with the outcome; knowing they did everything in their power to secure the victory.
Like the Founding Fathers of the United States, you should want to win. However, it cannot be your primary focus if you want long-term success. It is just as crucial to know "how to play the game" as it is to win.
The strategy for success on the trading field is to learn discipline and to be resolute. You must be disciplined and acknowledge that asserting your will on the trading markets is a fruitless endeavor. The markets should be respected and no matter how hard you fight against it, you cannot control them. They pretty much do as they want and can be quite fickle. What you do have control over, is viewing the market as an intellectual challenge. Use your creativity to solve difficult trading problems and then rest in the knowledge that you did everything possible to insure success and obtain profits.
It is inevitable, sometimes you will win, but on many other occasions you will lose. Regardless, if you win or lose, each trade can be a learning experience. Every trading opportunity can teach you something about the markets, trading in general, or yourself. On one trade you may learn how a "sure thing" can turn into a loss due to an unexpected downturn in a particular business sector. Maybe another trade opportunity will teach you about your unique limitations. Viewing the trade markets in this light will help you to stay focused on the overall picture and not solely on winning. Your long-term success is not dependent on winning alone, but on "how you play the game".
As with any successful business endeavor, you must love what you do. If you truly enjoy trading, it will keep you plugging away and learning new methods to insure your success. By being "in it only to win it", you may "throw in the towel" when you are hit with a loss, or worse yet, a string of losses. If you focus solely on winning and not the joys and challenges of trading, you may react emotionally. To stay in the trading game for the long haul you must think rationally about what can be done to recoup losses.
How to Stay on "Top of the Game"
We live in a society that is driven to win at all costs. However, seasoned traders know that this is not the secret of success. They do not focus only on the dollar signs. It is also important that they love what they do, take calculated risks, and become knowledgeable about new trading trends and methods. Basically, this is how they stay on top of their game. This will ultimately insure their long-term success in the trade market. With this mindset, whether they win or lose, they are at peace knowing that they gave 100%.