Over the years we have been asked what it takes to be successful in trading. Unfortunately there is no one way or panacea but we believe this is a beneficial description to start:
We believe that there are four key attributes to success. Those are Desire, Determination, Discipline and Patience. We refer to them as the 3DP principle. This principle applies to virtually all aspects of life; business, trading or other. It is interesting and important to realize, at least in our experience, that each one in progression is a bit more difficult. It all starts with having an aspiration which is strong enough within to create a passion. This will lead then to the second attribute of determination.
Determination fits into our principle as a firmness of purpose or resolve. Determination can also be described as being Ready, Willing and Able to do what it takes to achieve the aspiration.
It gets harder from here because there will need to be in place a plan of attack and also a state of mind in place or ingrained that will be followed and adhered to faithfully without detour to obtain that which is desired. This is the discipline we speak of. It is a regimen that has been designed and is to be followed as well as it being a behavior intended to maintain self control. Once a plan of action is in place it is to be obeyed. To stray is to go backwards and defeat the purpose. We like to use the example of a dieter who strays from a diet regimen. The goal of losing the intended poundage is put further from the dieter’s grasp each time and for how ever long the cheating lasts.
The fourth attribute of patience can be even more difficult but is necessary to allow the fruits of all the labor to be given a chance to work. This portion of the success equation requires an ability to suppress the anxiousness that can arise whether things are going well or if they have gone off course. In any business and perhaps in particular the business of trading, discipline will provide a method of handling situations that do not conform to what was expected or intended. In trading this could be stop protection and risk reduction. We have seen it too frequently where the plan is altered because of outside influences. There are many emotions that need to be suppressed in order to allow a plan to proceed. This is what the patience aspect is about. The plan is in place; let it work. If it isn’t broke don’t fix it. The more you mess with something the greater the chance of breaking it.
Eventually, if the business concept is in fact sound, confidence will grow not only in the plan but in the execution of the plan which will smooth the process toward successful attainment of the desired goal.
Futures and options trading contain substantial risk of loss and may not be suitable for all investors.
