How many times have you let yourself fall into the jackpot mindset while trading? New traders, or those in the middle of a string of losses, often let themselves believe that success in trading is all about being able to catch those big, homerun trades.
Let me be straight with you and say that this is NOT what forex trading is about. Jackpots are mainly for casinos, where you tend to make huge risks by placing a big chunk of your money on a single bet with the hope of making bank. If you win, you can walk away with money that can last you a life time, but if you lose, you will have very little left.
The reality is that trading is a grind. Being an elite trader is not based on making huge, jackpot trades. It’s about consistently grinding out small wins day after day. Occasionally, you will get lucky and have a large winning trade, but that is only because you were able to seize the opportunity due to your daily activities and training.
Let’s take the Cinderella story of Jeremy Lin for example. The young NBA star has been the talk of the town ever since he was given the chance to start for the New York Knicks.
In one of his most memorable plays, he sank a buzzer-beating 3-pointer versus Toronto that gave his team the win.
It was quite a dramatic shot and could very well be likened to hitting the jackpot, but in the big picture, that shot alone did not win the game. He scored 27 points and dealt 11 assists, and each one of those was necessary to grab the big W.
Some even liken his entire NBA career to hitting the jackpot, but I think that’s an unfair assessment. His success has been the result of years of dedication and training. His peers have described him as a hard working individual that always gives his all. That is why when the chance to shine presented itself, he had the skills to capitalize on it.
Here’s Linsanity in action:
By calling trading a grind, it’s also implied that you must go through bumpy roads. Lin wasn’t a star when he first entered the NBA. He was at the end of the bench and would often only get playing time in the dying minutes of a game. He was even relegated to the NBA’s developmental league four times. However, this did not stop him from giving his all and training daily to improve his skills.
Know that this is the key to trading. You’ve got to grind it out. Avoid the jackpot mentality. Not every trade will be a big winner, and there will be times when things get rough. But as long as you’re consistent, even small wins will lead to success and a huge fat bank account.