Abraham Lincoln once said,
Give me six hours to chop down a tree and I will spend the first four sharpening the axe.
Mr. Lincoln knew a thing or two about preparation. In his rise to the presidency, Mr. Lincoln had to prepare for success and failure and he did so through much trail and error. Following are just a few of the lessons us traders can learn from Mr. Lincoln:
- 1) PREPARATION TAKES TIME. If you are new to trading stocks and options, then you should be prepared for a learning curve just as you would any new endeavor. New traders are quick to jump on any new trading system they read about or see on the internet thinking that since it worked for others then it should work for them as well. This is most often not the case. Mr. Lincoln did not become a success over night and neither can you. Having a trading system is just the beginning of learning how to trade.
- 2) PREPARATION REQUIRES EFFORT. Most people just do not want to put forth the effort it takes to become a successful trader. How many trading systems have you traded with success only to find the success temporary? This is where marketers of get rich quick trading systems find their market-with novice traders who are seeking a magic elixir, a holy grail of trading. By their very nature, these systems attract those who do not want to do the homework necessary to become successful on their own. Mr. Lincoln put forth the time and energy to rise to the highest office, while others settled for what was easy. Do you want to be average or do you want to rise to the top?
- 3) PREPARATION REQUIRES PERSISTENCE. Abraham Lincoln endured many set backs on his way to becoming the president of the US. Here are just a few that we know about:
Lost job, 1832
Defeated for legislature, 1832
Failed in business, 1833
Elected to legislature, 1834
Sweetheart (Ann Rutledge) died, 1835
Had nervous breakdown, 1836
Defeated for Speaker, 1838
Defeated for nomination for Congress, 1843
Elected to Congress, 1846
Lost renomination, 1848
Rejected for Land Officer, 1849
Defeated for Senate, 1854
Defeated for nomination for Vice-President, 1856
Again defeated for Senate, 1858
Elected President, 1860
Those same traders who do not want to put forth the effort it takes to become successful also fall victim to doubt and self-defeat. Every time there is a loss, or profits are taken too early (or too late), or a trade is missed, the trader beats himself up only to set himself up to fail again. As long as you have a plan and stick with it (persistence!) there is no failure. The success is found in persistently following the rules, not being right all the time-which will never happen anyway. What would have happened if Abraham Lincoln gave up after his first defeat? What would happen if you stuck with your rules every trade?
TRADING IS WAR. PREPARE YOUR WEAPONS.
