Perfect Analogy...

Discussion in 'Psychology' started by Breakout, Jun 13, 2003.

  1. I was just skimming through one of my Trader Vic books last
    night and read this again. I think this is an excellent analogy
    to why so many traders fail...

    The question is... "Why do so many traders fail?"

    "The difference is neither intelligence nor
    knowledge, but the will to execute knowledge.

    Acquiring the requisite knowledge to trade, or
    to do most things in life, is relatively easy. For example, consider
    the area of weight loss.

    You can walk into any bookstore and find
    countless books on the subject by experts who outline proven
    and healthy weight loss techniques.

    Yet, only 12 in 100 people who start a weight
    loss program actually lose weight, and only 2 of those 12 maintain
    the loss for more than one year.

    That's a 2% success rate...worse than the 5% success rate for commodity trading!

    Whether it's trading, losing weight, or pursuing any other goal, the most difficult part isn't in knowing
    what to do or how; it is in making the decision to do it and
    stick to it."

    Trader Vic-Methods of a Wallstreet Master...
    page 198.
  2. Mecro



    all about discipline.
  3. TooL


    I agree.

  4. It's even worse than it sounds -- at least with people trying to lose weight, they have actual incentives to stray from their goals, namely, hunger pains, satisfaction from fatty/sugary foods, relaxing vs exercising etc.

    What is the corollary for a losing trader that would attract him to make more losses? On the surface, there are none. The more correct analogy for a losing trader is that of a dieter that has only cow dung available for food who still gorges himself rather than maintain the discipline to lose weight.
  5. cosmic


    great quotes

    absolutely agreed - discipline & persistence make the difference.

    have a good day