Bounce Back Like a Tennis Ball
"There is nothing like losing all you have in the world for teaching you what not to do."
For the next few weeks, we will be using quotes from Edwin Lefevre and his masterpiece trading book, “Reminiscences of a Stock Operator.” Enjoy!
Success Through Failure
Failure hurts. And in the stock market, failure can hurt in more ways than one. Mental, emotional, and monetary pain all at once—it can be a recipe for serious depression.
However, losing money is part of the game. Taking risk is part of the game. And the greatest traders that have ever lived didn’t make it to where they are because they didn’t lose money, they made it because when they lost money they learned from it, and had the determination to bounce back.
Edwin Lefevre lost all of his money multiple times. He says:
When I was about twenty-two I ran up my stake to fifty thousand dollars; I lost it on May ninth... There is nothing like losing all you have in the world for teaching you what not to do. And when you know what not to do in order not to lose money, you begin to learn what to do in order to win.
-Edwin Lefevre
Ask Yourself:
What have I learned from losing money?
What lessons are hard for me to learn, or that I don’t want to learn?
How can I set rules for my trading so that when I lose money, I don’t have to lose it all in order to learn the lessons I need to learn?
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