Your Chances of Success

Discussion in 'Psychology' started by Tonkadad, Oct 20, 2006.

  1. bluedemon77

    bluedemon77 Guest

    I agree with the article. Like I've said before, whether it's trading or any other business, deciding to do something else (like get a job) isn't "failure." It's only failure if you blow out your trading account and are forced to do something else.

    The good news is, unlike somebody who knows how to fry a hamburger so decides to open a restaurant, you can quit while you still have some of your nestegg left. If you invest in a bad business, you can lose your whole nestegg, plus your house and whatever you put up as collateral for the business loan, and/or have to file bankruptcy. During my career I've had the opportunity to review a lot of business plans written by people with no experience, no strategy and barely two nickels to rub together, yet they put their house on the line to finance it. Now I ask you, is trading worse than any other business?

  2. Rocko1


    That's a great article. It made me realize I have no idea if there's merit to the claim that 90-95% of start up businesses, traders fail in the first year.
  3. There is no merit to it. Many give it up quickly for a variety of reasons. That ain't failing! That's sticking your toe in the water and saying, FUCK, this is colder than I thought.
  4. Rocko1


    Oh man that makes a lot of sense, I'm gonna remember that for the rest of my life, haha :D

  5. lol hahaha love that quote :D
  6. mogul


    that's a great article...same research was presented in Scientific American not too long ago

    It makes perfect sense, it is the last push of effort to get better on a daily basis that is the harderst, and which conflicts against man's innate strive for comfort and avoidance of pain
  7. This article is very confusing to me.
    At the end of her statistics table she concludes that there is 1 out of 3 chance one will be in business after 10 years.
    According to this logic 85% of people stay in business after first year. But does it mean that 85% of people are profitable after first year? I doubt it. This number is kind of high for success rate after 1 year in business. And why actually the success rate of business profitability decreases over time. Why would business which is profitable after 1 year degrades its performance and becomes unprofitable in 10 years? This makes little sense to me.
  8. Tonkadad,

    More than 95% of all traders lose their money!

    Now look at it this way.

    Less than 5% of the traders walk off with 100% of the loot.

    Who are you?
    #10     Oct 22, 2006