I was on facebook the other night, and I ran into an article, “Will Your Child be Rich or Poor? 15 Poverty Habits Parents Teach Their Children.” I read the article, and was surprised by Habit #4. It stated,“62% of the wealthy floss their teeth every day vs. 16% of the poor.”
Now that may seem like a silly statistic about an unrelated field. I mean, how does flossing your teeth connect with the size of your bank account? As I started to think, it hit me as to why it was #4 on the list. Successful people are creatures of habit, but not just any habits: Successful habits.
If you want clean teeth you need to both brush and floss. I don’t think I am saying anything too ground breaking here. I mean, we’ve all been taught the benefits of dental hygiene from a very young age.
So how will dental floss help you in your trading?
Habits. We, by our life experience, create habits on how we act when different things happen to us. When people see the market falling they are naturally fearful. When people see the market raising they are naturally greedy. It is not the emotions that define who we are, it is what we DO with those emotions. Do you let fear take control of you? Do you cut your winners short? What we have found in the Apiary Fund is that the most successful traders are the ones who have a set of rules, and apply those rules consistently every day. We all have times in trading where the market does not go our way. The question is what do we do at those times?
Remedy: Know your rules and follow them.
That might seem like a nice trite remark, but what do I mean by know your rules? Step one is to write your rules down on paper. I know most of you have your system that you follow in your head, but if you can’t write it down then you can’t measure it. If you can’t measure it you can’t improve it. Once you know it, you have to follow it.
Seems like a simple enough recipe for success, but then again so does flossing!