Big wins are very nice, but they are often unrealistic and our dependence on them can often lead us down paths that guarantee failure. Failure is good, but not guaranteed failure. We do not want to set ourselves up so that every time we try we set ourselves back. We want to fail in ways that was a result of a genuine opportunity that didn’t work out in the way we thought it would.
I have traded stocks for over the past decade of my life and for the most of that decade I lost a lot of money. The problem was that I was always, and I mean almost always, trying to make each trade a “big winner”. As a result of trying to get a big home run winner each time, I would bet too big and break my trading rules on the next idea I thought would be provide a sizable price move.
It has not been until the last few years that I have realized the power of focusing on small, consistently winning trades. What actually sparked this was when I was at the gym on the stair stepper and Jim Cramer’s Mad Money was on one of the televisions. There was no sound, but I was reading the subtitle, and Jim explained how lots of small wins could add up to a lot of money. I have never traded so well since I adopted this idea into my trading.
I have had three successful years in a row as a result of this. I am amazed at my ability to make consistently winning trades and limit my losses when I stick to my rules and bet in smaller size trades. The small gains have added up to substantial amounts of money as a result and I am on my way to making back all of the money I lost.
One of the most recent trades I had was almost a 90% gain in only a few months on Carvana, CVNA. Of course, this was on a smaller amount of money, but the point is I have built a strategy that allows me to capitalize on big gains, and over time as I refine the strategy, I will be able to bet bigger and bigger, but this must take place slowly, there is no rush to increase the size of the bets since that is how trouble and failure creep in.
We must get in the habit of not only seeking out small wins on a daily basis, but we must also celebrate them. Our progress is everything to our dream. If we are progressing, life is good. If we stagnate, we stress. We will not be in the state of mind that we need to be in if we stress too much. A little bit of challenge is good, but too much is deadly.
Whatever your hobby is, get in the habit of celebrating even the tiniest of wins. If you are trying to lose weight, and you drank a glass of water, that is a win. If you took even one flight of stairs during the day, that is a win. If you walked to lunch, that is a win.
If you are trying to learn the guitar, even putting the guitar out in the open where you will see it, that is a win. Picking it up for 5 minutes and strumming G, C and D, that is a win. Watching a 5-minute YouTube video on how song writing works, that is a win. The key is that we allow ourselves to have these small wins every single day of our lives.
These small wins add up to substantial amounts of progress overtime, they “snowball”.
We must keep seeking these small wins until we crave them. Then once we crave them, it won’t be long before we are “compelled” to chase after them.