There is a certain amount of failure we need to experience for psychological growth. This level of failure varies from person to person depending on several factors, such as drive, of each individual. Too much failure can overwhelm individuals, too much success, on the other hand, tends to make individuals resistant to change. Why in the world would I change a winning system?
The main cause of change is a feeling of dissatisfaction with the situation one is in, whether it’s a trade or a relationship. Under normal conditions we are inclined to continue doing what has worked and what feels right. It’s when discomfort comes knocking that the idea of change first enters the mind. Some “feel” the need for change in their gut while others can’t see the need until it’s too late.
That failure to notice the need for change is where real growth comes from. Sifting through the ashes to find the remnants of the self-esteem needed to forge ahead. The ability to change and to progress is an integral part of growth, it’s in our DNA. Imagine where we’d be as a society or a nation if we didn’t experience dissatisfaction and discomfort and make change.
Having the courage to step off the curb after having your assets handed to you is difficult, no question. Although sitting on the sidelines waiting for the perfect wave only leads to a sunburn. Start small, start real small, whatever it takes, but get back in the game.* I wrote this post after discussing large losses with several traders over the past few weeks. I took a hit in September and know that many others did as well so logic would suggest that there are many who lost lately. This post is for those that lack the courage to fail and get back in. If you lost large like some traders I’ve spoken with then perhaps you shouldn’t get back in the game. Take a look at your trade metrics, refine your risk parameters and check yourself before stepping off that curb.