Is Winning the Name of the Game?

Is winning the name of the game? There are so many aspects to life that have a focus on winning.

There’s a stigma attached to losing.

It starts early in our school and sporting endeavours. And continues into adulthood across aspects including business.

Is a ‘win at all costs’ attitude relevant to trading? 

Or is it an inhibitor of success? 

We believe it’s the latter. 

When I first started trading, I believed that an 80/20 win loss ratio or better was required to be successful. Surely my wins needed to be well above my losses? How else was I going to make a decent profit?

But logic and simple math proved me wrong.

It became clear that even a 50/50 win loss ratio for a medium term trend follower could produce profitable results.

On the surface such a ratio looks pretty poor. 

Yet a strategy that gets rid of bad trades and keeps good trades running, will make money.
So unlike most businesses, sports or in life, trading is not about how many times you get things right. 

In fact in the world of trading, winning isn’t always good and losing isn’t always bad. This is what most people find difficult to get their head around.

What is essential is strict risk management and some simple math to get your position sizing correct. 

Drop the need to always be right.

Yes, it’s difficult to get rid of old belief systems, yet to become a successful trader, you must. 

So, is winning the name of the trading game? 

Or do losers make the best traders?

Good luck with your trading.