There was a business executive who was deep in debt and could see no way out. Creditors were closing in on him. Suppliers were demanding payment. He sat on the park bench, head in hands, wondering if anything could save his company from bankruptcy.
Suddenly an old man appeared before him. “I can see that something is troubling you,” he said. After listening to the executive’s woes, the old man said, “I believe I can help you.” He asked the man his name, wrote out a cheque, and pushed it into his hand saying, “Take this money. Meet me here exactly one year from today, and you can pay me back at that time.” Then he turned and disappeared as quickly as he had come.
The business executive saw in his hand a cheque for $500,000, signed by John D. Rockefeller, then one of the richest men in the world!
“I can erase my money worries in an instant!” he realized. But instead, the executive decided to put the uncashed cheque in his safe. Just knowing it was there might give him the strength to work out a way to save his business, he thought. With renewed optimism, he negotiated better deals and extended terms of payment. He closed several big sales. Within a few months, he was out of debt and making money once again.
Exactly one year later, he returned to the park with the uncashed cheque. At the agreed-upon time, the old man appeared. But just as the executive was about to hand back the cheque and share his success story, a nurse came running up and grabbed the old man. “I’m so glad I caught him!” she cried. “I hope he hasn’t been bothering you. He’s always escaping from the rest home and telling people he’s John D. Rockefeller.” And she led the old man away by the arm.
The astonished executive just stood there, stunned. All year long he’d been wheeling and dealing, buying and selling, convinced he had half a million dollars behind him. Suddenly, he realized that it wasn’t the money, real or imagined, that had turned his life around. It was his newfound self-confidence that gave him the power to achieve anything he went after.
How can we apply this learning in the trading ?
Most of trader are hoping for a one big trade which will make them millionaire overnight, easiest way to do is Buy Deep OTM Call and Put Options and hope for some Black swan event to take place and encash big profit. Such trades happen rarely.
Think of the present situation as the uncashed cheque that the businessman was given. He didn’t cash it – but the confidence that the cheque gave him was enough for him to devote extra energies into his business, and turn it around through his own efforts. Likewise, think of Trading as Business and work a lot on discipline, market will knock you and every time you need to get up and work on yourself like a champion Sportsman.
The fact is that if you step up your activity levels, if you engage with your trading psychology and trading system , you will grow your business anyway
Get onto a higher level of activity now. Stay focused on your activity levels and forget about Black Swan events. Take one trade at a time and focus your energy level on that by following your system and discipline. Do this for every trade you take, without stopping.If you simply stayed focused on maintaining a high level of discipline and Trust on yourself and trading system, you will see that your trading profits has grown. You will see that you don’t need to hold you head in your hands and ponder your future.
Your self confidence is what gives you the power to achieve what you want, not the stock market.