In trading, success is never due to one thing, but failure often is.
Have too large a stop loss? You end up losing more capital than you gain.
Have too small a stop loss? You end up with too many losing trades.
Have too big a profit target? You end up with too few winning trades.
Have too small a profit target? Your profits won’t be enough to cover your losses.
Trade without an edge? Losing is only a matter of time.
Trade too large? You end up losing even if you have a winning strategy.
Trade too small? Your returns aren’t worth the effort.
Can’t stick to your trading rules? Losing is inevitable.
Don’t know when to break the rules? One unlucky event can kill your account.
Didn’t notice a change in market conditions? Your winning strategy becomes a losing one.
The list goes on and on.
All failure requires is a single weak point.
With so many ways to lose, the default outcome of trading is, unsurprisingly, failure.
Success is the exception, not the norm.
So how do we win?
We win by failing so many times that we become a master of failure.
Once we understand all the different ways we can lose, the only paths that remain are the winning ones.
Chris,
I am trying to follow the Icarus system and the hardest part is waiting the day trade with support and resistance gives a view where trade has been in the past and where it may be headed. I am taking my time of learning this style and it is comfortable. I opened a paper account and have two others of my own of real money one is for a Utah company and it trades on pips my FX account used $ the paper account is in $ also all three have their pluses & minus good and bad points. Getting to the entry and exit strategy and the 1 pip rule and add and take profit as you go.
Harry
Hi Harry, good to hear that you’re working on applying the Icarus trading method. If you have any questions regarding its application feel free to drop me an email about it.
Once we understand all the different ways we can lose, the only paths that remain are the winning ones.
Wow, this one got me.
I’m really touched.
“We win by failing so many times that we
become a master of failure.
Once we understand all the different ways
we can lose, the only paths that remain are
the winning ones.”
Love this. It’s the most unabashedly truthful words in forex trading I have seen. The problem is most traders have yet to accept losses as part of the whole game. The very idea of losing is something they still find hard to accept. I say this because I myself am sometimes also guilty of this. The inevitability of occasional losses is something that’s yet to sit totally comfortably with me.
Hi Okeke, yes, that was one of the hardest things for me to learn – being ok with having losses. Thanks for the comment.
Chris, this is a masterpiece !!! Thank you for sharing your thoughts! .
Best of luck and wealth with your endeavors!
Thank you!