There are striking similarities between life and stock market, which if realized can make a successful trader.
- Life has its ups and downs and so does the stock market. Mistakes are the best teachers.
- To be successful in life, one has to seek out opportunities and make use of available opportunities. Same is true for the stock market. One has to seek out the trades proactively. Passively buying stocks and then hoping for profits is not the path to success.
- True success comes not from having only ups in life, but from the ability to bounce back from the lows. Same is true for the stock market. Successful are not those who have all the right trades, but those who get back from the wrong trades.
- Successful people always have contingency plans for downs in life as they know that down times are a part of life. Successful traders limit their losses in wrong trades by their risk management.