5 Fundamental Truths In Business
Parallels From A Professional Trader
5 Fundamental Truths In Business: Parallels From A Professional Trader
Have you ever learned a new skill or concept, but felt something was missing when it was time to execute?
You might attribute it to a lack of practice, but I think it could be deeper.
My trading journey involves hours and hours of study time. I also enjoy listening to podcasts to gain a deeper understanding from other traders.
Each week, I focus on getting better than the last. When I hear the stories about how other traders struggled with fear, greed and doubt — it helped me!
One of the books that kept coming up was Trading in the Zone by Mark Douglas. This weekend, I decided to listen to the 7-hour audiobook.
I realized that trading psychology goes “hand in hand” with business.
You may believe you have all the fundamental skills to operate a business. But how is your belief system?
Yes, your psychology?
Mark goes over the five fundamental truths about the market, and this also applies to business.
1. Anything can happen. The most thought-out strategies are still subject to the inherent randomness and unpredictability of the market, customers, etc.
Approach your market with an open mind, without rigid preconceptions. This mindset shift helps to avoid emotional attachment to specific outcomes. It also helps to prevent impulsive decisions based on unfounded expectations.
Be flexible, adaptable and practice good risk management.
2. You don't need to know what will happen. You can't predict the future, but you can manage risk to control losses. Think about sales and marketing — it’s a numbers game.
One ‘no’ is closer to a ‘yes’ and a ‘loss’ is closer to your next ‘win’.
The key is optimization!
3. Wins and losses are random. In trading, the distribution of winning and losing trades does not follow a linear or predictable pattern. Understanding this randomness will help you avoid the trap of expecting consistent wins and losses — based on past results.
Focus on executing your plan consistently.
4. An edge only means a higher probability of winning. There is no 100% guarantee, but your strategy can increase your odds. Think about your market understanding and unique traits.
You won’t win every trade or bid, but the goal is to capitalize on the higher probability of success over the long run.
5. Every instance of the market is unique. Your market conditions, customers, price movements and participant behavior are constantly evolving. Don't make assumptions solely on past behavior.
Remain adaptable and open-minded to make more informed decisions.
I don’t know exactly where you are on your journey, but I share words of encouragement, lessons learned, and ideas to help you grow your business.
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Thank you for taking the time to read today's TechPreneur Newsletter. I hope the information was helpful and inspiring. As always, I'm here to support you in your business journey, so please don't hesitate to reach out to me on Twitter at @rudybanx Keep striving for success!
Until next time!
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