Sunday, April 20, 2014

Choosing Being Profitable Over Being Right

Lefty Gomez, baseball legend, said it best: "I'd rather be lucky than good."

Often, the trader is driven by the need to be right, by the need to successfully pick the market's direction. When being correct is the motivation, successful trading becomes a difficult task.

 Success comes in when the trader decides to be profitable rather than being right. When he takes this step, plans are put in place to identify setups, manage risk, accept drawdowns, avoid the 'this way or that way' trade.

 We are in the market to make profits, not for being the most intelligent.

 Avoiding the need to be right, will help us to accept our failure and cut our losses quickly, so indirectly saving our capital and getting ready for the next opportunity.

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