In this post, we’re going talking about the inner game concepts. We’re going to talk about striking out.
And the reason we’re talking about this is that we have a new book coming out – it’s called Mindsets of a Master Stock Trader.
All of the things in this book are mindsets and inner game concepts. And an inner game concept is anything that’s inside of you. Think of it like emotions.
How do you deal with emotional trading?
How do you recover from losses?
Whereas the outer game (external things) is all about the physical part of it like:
- reading charts
- the technical side
- money management
- risk management
If you apply this concept in sports like we’re talking about striking out today, it’s the baseball mechanics. That’s the way that you stand, the way that you hold the bat, the way that you swing, the way that you run, and how to become faster at that.
The inner game is if I struck out four or five times over the last few times that I’ve been up to bat, then how do I deal with those emotions?
How do I deal with that loss?
How do I deal with swinging and missing?
That’s what we’re going to talk about today – striking out.
Success in Trading is like Dating
And I want to start this out kind of looking at dating relationships. If you look at dating, you’ll find that some people have more success in the dating department than you do.
Or maybe vice versa. Perhaps you have more success than they do. And when you look at this, you have to understand that a lot of things have to line up for you to have success.
And in the end, it comes down to striking out more often. The more often that you strike out, the more likely it is you’ll get to success.
Why is that so?
Let’s say you’re looking to date a woman, and you’re looking to have a long-term relationship or have kids.
Here’s your timeline between the time you’re born to let’s say age 100. And you’re dating different people throughout your lifetime.
Maybe here you find someone, and you continue that relationship for a long period. But by the time you get there, you might have dated a hundred people.
One of the reasons why it doesn’t work out is it could be because they are already in a dating relationship.
On the other hand, maybe they’re not interested in men. Perhaps they’re interested in other women. All of a sudden, that’s not going to work.
Maybe the timing is wrong. Perhaps they want to be single. Maybe they don’t even want a date.
There’s a lot of factors that play a role in finding and getting to success in a relationship. And with time if you start to date and some things don’t work out, and they drop off. You’re striking out, and then eventually, maybe you get to a successful one.
Why You Need to Avoid Going Big with Your Trades?
Without striking out, you can’t get to that success point. And that’s what I want you to think about and understand. You have to be able to strike out to get to your success point and get to your destination.
That’s because a lot of people are trying to make super successful trades. They think it’s going to happen right away and they go big. And obviously, that’s not going to work. The jump is too quick.
You need to be able to go ahead and strike out many times to be able to get to success. In some situations, some things do help. What helps you get better success?
By the time you get to this dating stage, you have to have some kind of game. And this is what most people think. I don’t have the right game as this person does.
I don’t know what to say. I don’t know how to talk to women. I get nervous. Well, if you don’t have the right game, this is where the blueprints may help. There are blueprints for the timing or location.
Blueprints for Trading
Maybe you’re trying to meet a certain type of woman at a museum, but they’re hanging out in bars. Or vice versa. Perhaps you’re trying to meet someone who’s family-oriented at the library.
But they already have kids, and they’re already married. It could be other things like just talking and getting to know one another. The blueprints might not necessarily be just the talking part or communicating with women.
It could be just the timing, the location, finding and spotting the right opportunities at the right places. 9:30 in the morning versus 10:00 p.m. is an entirely different story. That’s what blueprints allow you to do, and they help you get to that destination.
But even with blueprints, you’re still going to strikeout. You have to have a handful of things lining up in a row for you to get to your success point. And the more times that you strike out, the more likely you’ll be able to get to your success point.
That’s because you’ve tweaked your blueprints. You’ve tweaked the timing, the location, you understand who to talk to, you know the way that you speak to somebody.
And that’s how it allows you to get to the success point. A lot of people hold back, thinking that they don’t want to strike out and miss. That’s because it feels terrible to miss. And it is. But if you think about striking out as being more positive, it means that you have more chances in shots.
I’m not saying you need to go big right away right. You don’t need to propose initially the first time you meet someone. That’s like going out on a trade, and you’re all of a sudden saying I have $20,000, and I’m going to put all of this trade into a single trade. I’m going to put $19,000 of it and see what happens.
You’re rolling the dice there. Instead, what you need to do is create tiny little steps to be able to strike out often. That way, you can see when you’ve reached your destination a few times, and you’ve gotten success a few times. And then you can progress further.
The blueprints like education, knowledge, learning things through books, video courses all these things help. They give you the blueprints to be able to either talk to people better.
Or, in our case, it could be trading to be able to learn how to put on a trade. Also, you can learn how to manage money accordingly, how to scan charts. All of those things are blueprints. But you have to strike out more often.
Be aware if this happens:
- This chart, I evaluated completely wrong.
- I manage my money horribly on that trade.
The more times that you do that, the finer tuned your blueprints will be. And that’ll allow you to get more and more successes. And in our case, when it comes to trading, we’re not looking for a one-time one-hit-wonder where we’re looking to marry someone for forever.
You’re not going to be married to your stock. Instead, what you’re looking to do is just go on a first date. I just want to get to that first date point. And if you get there, you’re profitable, and you’re successful.
Be Patient when Trading
It turned out to be successful. Sometimes you might be able to take that relationship further just like in trading. Maybe you’d go ahead to multiple dates. That way, you’ve had multiple wins on that trade or a bigger win on that trade.
But for you and trading, you just need to land a handful of nest eggs. You need to land a handful of trades, and you’re constantly making money, and if you can spot those opportunities (just like in dating), spot an opportunity to go on a date.
Great, that worked out. Let’s go on another date. Let’s go on another date. It’s not that you’re exclusively dating. It’s just you’re trying to reap the benefit and collect the money every time.
And that’s what you’re doing with stocks. Opportunity is money in your bank. That’s the name of the game. That’s the business. It’s about getting to that point. If you’re married to stock, you’re there forever.
You’re asking for the proposal way at the beginning before you know and understand the stock itself. Before you’ve even traded. Before you even went on a date. Before you even talked to the stock or talk to somebody.
You’re going out for that proposal, and that’s not what you want to do. You want to have multiple dates, and then you could be dating a stock forever and continue to make money with it for a long time.
But to get there, you’ll probably strike out in between. And the more that you strike out, the finer tuned your blueprints will be. And that’s why I say that striking out is a good thing.
The more that you strike out, the finer your blueprints will be, the more tuned you’ll be to being aware of spotting opportunities in trading.
And that way, you can be consistent repeatedly time and time again making money from your stocks and your trades.
I hope you see and are aware that striking out is a good thing. The more that you strike out, the closer you’ll get to your destination.
When you strike out, you want to do it little bit size pieces. You don’t want to put on a $20,000 trade and then strikeout. You don’t want to do that, especially your first time up to making a trade.
Trade small, trade often, and strike out a lot. That way, you can learn and evolve and develop your blueprints and continue to get better. And then you can increase the size of the trade.