Have you ever thought about why people fail in their personal and business achievements?
Why do some just quit and lose self-control?
Why do so many traders lose money?
What are the potential reasons for this and how you can benefit from those people (in a positive way)?
I'm going to share one of the biggest problems that people experience and how to train yourself to overcome failure so that you can be more successful, make more money, and accomplish your goals.
Let's get started!
Why People Fail in Life
One of the biggest problems that people experience is that they are oftentimes a slave to dopamine. This makes it so that they trade a short-term benefit over a larger long-term payoff.
People who seek short-term dopamine fixes will seek short-term gratification, often at the sacrifice of long-term success.
Grant Cardone had a really good quote when he said:
"It's important for you to pay the price today so that you can pay any price in the future".
I believe this is indicative of how vital short-term sacrifice is, in order to realize a long-term payoff in the future.
Even so, sacrifice has detrimental effects when it's brought to the extreme.
I saw it myself when working as an investment banker.
I saw managing directors who were often in their 40s or 50s who had sacrificed all of their 20s and 30s and were very miserable.
They often indulged in coping mechanisms like alcohol, drugs and women in order to tolerate themselves at 50 years old.
When done in moderation, I definitely believe that sacrificing some of the short term in order to realize a long-term payoff is in your best interest - as long as it’s not brought too far.
Sacrificing too much is also very prevalent with medical doctors since they often become doctors around 32 years old and are a few hundred thousand dollars.
So remember, it’s all about balance.
The Solution AND HOW TO SUCCEED
So how is this going to help you with your trading and how is it going to allow you to amass significant wealth?
Like I said earlier, it's all about balance.
You want to avoid engaging in short-term self-destructive behavior, such as eating junk food, eating vegetable oils, or taking risks that spike your dopamine levels.
While these behaviors may satisfy your short-term craving, you’re sacrificing a larger payoff in the future.
With respect to trading, trading too often usually leads to a short-term dopamine hit. The problem is that this will also train you to enter trades that you shouldn’t have entered.
One of the most important aspects of trading is knowing when to trade and when not to trade.
I recently listened to a podcast from TastyTrade where Tom Sosnoff was encouraging his followers to trade call options.
From my experience, and I've probably made about 30,000 to 40 000 options trades, you should be extremely picky when selling call options because those call options have a high tendency to get challenged.
When you trade too often, and every trade that you make gives you a slight dopamine hit, then you're going to train yourself to trade too often.
Once a trade gets challenged, you may experience panic and anxiety.
There is also correlation risk when trading, meaning that if you have a challenged position, then it’s likely that you’ll have ~2 - 3 challenged positions.
As a result, it's important to think long-term and don't give in to short-term desire to trade too often, because it may impair your long-term success.
By resisting the urge to give into short-term pleasures, you’re able to improve your discipline and patience (think of it as a muscle that you can strengthen).
Similar to going to the gym, every decision that you’re faced with can allow you to become more disciplined and patient.
It'll become easier for you to accomplish your goals if you’re not a slave to dopamine.
By making sound, and rational, decisions, you’ll be able to make better decisions by not giving in to short-term temptations.
You can easily live a better life by challenging yourself, becoming more disciplined, engaging in dopamine detoxes, and not giving in to short-term dopamine-seeking behavior.
This will allow you to be more successful long-term
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