Here’s something to think about that I think has implications beyond trading. It’s an obvious fact that to make money in trading — or anything, for that matter — one must be right. Or, at least, mostly right; more right than wrong with the difference being a gross margin of sorts.
From there, I think many people make what I believe is an erroneous leap: that to be enormously successful one must be right most of the time. But if you’ve developed a trading system where the great majority of your trades are winners, or an entrepreneurial approach where most or all of your business ventures succeed, it can likely only be because you are making high-probability decisions. High probability equates to low risk, which equates to small returns. That’s success, but it’s usually not enormous success.
Try it out. Go deposit your money in the local bank and you are virtually guaranteed to earn a return greater than zero 100% of the time. You can open a savings account or CD with virtual certainty of being right about earning a profit. You just won’t make any real money unless you’re into the seven figures already and just want to relax.