In honor of the winter Olympics I would like to share a few comparisons between an Olympian and a successful trader. Many of us watch the Olympics and think to ourselves “I could do that. All I need is a little training and the drive to succeed and I would be on my way to the podium.” Same with trading. We look at a chart and say “I can do this as long as I have a little training and the will to succeed I could be on my way down the road to riches.” Whether it’s an Olympian sport or trading, the road to success may be paved with good intentions but intent cannot replace proper maneuvering around the potholes. Let’s take a look:
1. Success is a process, not a destination. Ask any Olympian what it takes to succeed and you will hear the same mantra: persistence. Jim Ochowicz, who competed in the 1972 Olympics and then went on to coach the 2000 and 2004 Olympic men’s professional road racing team says, “you get there by sticking it out. There are a lot of people that try and give up.” Take, for instance, Dan Jansen, who in 1988 was favored to win the gold in speed skating. He lost, however, as he grieved the death of his sister hours before his competition began. He failed again in 1992 in Albertville but at Lillehammer in 1994, Jansen not only won the gold but also set a new world record, dedicating his medal to his sister. Jansen never gave up even after years of failure. As traders, we want to give up when we fail. We throw our hands up in frustration, believing that trading success is an illusion. Maybe we give up too soon. Maybe success is just around the corner if we were just willing to stick it out and dedicate ourselves to the process of obtaining an edge that may be too elusive to others. Much like digging a hole to find water giving up just inches before the spring is hit, leaving it for the next person who is willing to dig just a little deeper.
2. Success comes to those with little outside support but plenty of confidence. There are plenty of people out there who will tell you the odds are stacked against your success. Fortunately, those who succeed in life practice selective hearing when it can make a difference. Nikki Stone won the gold medal at the 1984 Winter Olympics for inverted aerial skiing. Just two years earlier more than ten doctors told her she would never ski again, especially since two spinal discs suffered major damage due to a chronic injury. She was told that there was nothing that could be done. Not only did she win that gold medal but she went on to win 11 Word Cup titles, four national titles, and two overall Grand Prix titles. Never let someone squash your confidence by beating you down and making you feel that you are not worthy to be successful. Do not listen when others give you a long list of reasons why you should not trade. All that really matters is the voice within you. Let others fail before trying. You will look at failure as the result of not trying.
3. Success comes in one form, failure many. Successful trading does not have as much to do about how much money you make as it does with making enough. There are many ways to fail at trading. The list is much too long to discuss here but suffice it to say that much of the failures have to do with pure emotional lack of control. Self-control and the willingness to allow the ego to starve is an important attribute of success, whether in trading or the Olympics. Take, for example, Eddie “the eagle” Edwards who finished in last place at the 1988 Olympics. His dream was to compete as a downhill skier but realizing he had limited funds to do so he had to switch to ski jumping, which was much less expensive. His qualifying came at the expense of living in a mental institute (because he could not afford other housing) and the need to wear glasses (due to his shortsightedness). In spite of his lack of athletic appeal he became one of the most popular names in Olympic history. He was chosen to be one of the torchbearers of the 2010 Vancouver Olympics and ran with the torch in Winnipeg, mental institute colored glasses and all. Stock trading is rampant with gurus, market geniuses, and well-known market prognosticators in their $3000 suits and $300 silk ties. It is also rampant with your everyday traders who can’t wait to brag about their next big trade to anyone who will believe them. The best traders are the ones who rarely appear on CNBC, who will never share their recent wins, who do not participate in the chest beating Yahoo chat rooms, and who chose to live their lives as if trading is a boring, selfless enterprise—-because it is! The ego-your ego- wants you to shout about your success from the rooftops, while sweeping your failures under the basement throw rug. The successful accept the defeats and the victories because in the end all that really matters is your own success, not the so-called success of others.
