Retreat is Definitely Not Surrender in Trading
Retreat Is Not A Surrender In Trading
The one who is successful in trading does not necessarily mean that he or she didn’t experience defeat, but it is about managing both their wins and losses.
The person who has never lost before and then keeps on bragging about it is the person who is always on the safe side. Sure they’ve won 100% of their deals, but it took a long time and most (if not all) of them are just measly winnings.
In reality, the real winners are those people who’ve suffered their fair share of defeats, but also have the courage to move forward despite what they’ve been through.
It is not about walking around scot-free. It is about continuously learning and continuously refining their craft in trading to achieve the best trading tips.
I am inspired to make this article because of Marty Schwartz. He was a marine and everything that he was taught during the course, he carried it with him and applied it to real life.
Because of his ironclad discipline and the refusal to crack under pressure, he became one of the wealthiest people in the world.
When asked about his triumphs, he said that the only way for you truly win big in trading is if you have the confidence and the willingness to retreat, especially if you’ve suffered major losses. Let’s break it down.
Why You Need Confidence
Confidence is necessary for trading because it is the only way you can really come up with a suitable plan of action. When you trade, always have that confidence that you will push through.
Now I want to make a clear distinction here regarding confidence and arrogance. The former is concerned about being brave enough to try things out, but also not too foolish not to adapt. The latter is more concerned about being too brave and it is almost always accompanied by the unwillingness to be flexible and change things when necessary.
Confidence is having the humility to change what has not worked. Because in reality, our mistakes should teach us lessons. That is why I’ve said earlier that the one who never lost a trade are the ones who are the cowards and the ones who are always afraid of taking risks even with the promise of a much greater reward.
Why Retreating is NOT Surrender
General Douglas McArthur lost so many battles. In some cases, he even retreated. But, never had he lost faith and he retreated just to regroup and recuperate.
You have to understand that retreating does not necessarily mean surrendering. Stopping whenever you’re on a losing streak does not necessarily mean that you quit altogether; it just means that you’re cutting your losses and to also calm your emotions down.
When you’ve lost a lot of trades, don’t be foolish to recuperate that in just one or two trades because that is just absurd. What you can do is to do it slowly and trade small. Build your foundation again brick by brick and you will build your empire once again. Trust that it is a process and that being confident will give you the keys to success so long as you keep doing what works for you.