Prepare for both success and failure in trading from "summary" of Reminiscences of a Stock Operator by Edwin Lefevre
When you trade in the market, you must always be prepared for both success and failure. The market is unpredictable, and even the most experienced traders can face setbacks. It is essential to have a plan in place for both scenarios so that you can navigate the ups and downs of trading effectively. Success in trading can lead to overconfidence, which can be dangerous. It is crucial to remain grounded and not let success cloud your judgment. Always remember that the market can change in an instant, and what worked yesterday may not work tomorrow. By preparing for success, you can stay humble and focused on making smart decisions. On the other hand, failure is a reality in trading. No trader is immune to losses, no matter how skilled they may be. It is essential to have a plan for dealing with failure so that you can bounce back quickly. Instead of dwelling on your losses, learn from them and use them as a learning experience to improve your trading strategy. By preparing for both success and failure, you can approach trading with a balanced mindset. You will be better equipped to handle the emotional highs and lows that come with trading, allowing you to make rational decisions based on market conditions rather than your emotions. Remember, trading is a marathon, not a sprint, and having a resilient attitude will help you succeed in the long run.
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