"Kiss a lot of frogs before you find a prince"


This is related to a chapter in a book "Originals" by Adam Grant which I find also relevant to Trading (not Investing)

The basic idea here is that "the odds of producing an influential or successful idea are a positive function of the total number of ideas generated".

"Across the fields, the most prolific people not only have the highest originality; they also generate their most original output during the periods in which they produce the largest volume."

  • Shakespeare produced 37 plays, 154 sonnets in order to produce his most popular works: Macbeth, King Lear, and Othello

  • Mozart composed more than 600 pieces before his death at 35; Beethoven produced 650 in his lifetime and Bach wrote over a thousand

  • Picasso produced more than 1,800 paintings; 1,200 sculptures; 2,800 ceramics; and 12,000 drawings...

  • Edison accumulated more than 1,000 patents in which 15 inventions had changed the world

  • ...

When it comes to trading, I found from my experiences that we should also need to try a lot of trade ideas in order to find a Big Winner. Out of 4 outcomes of a trade (Big Win, Small Win, Small Loss, Big Loss), only with Big Winners we could find success in trading. This is consistent with several trading principles for success as well:

  • Trading world is a Probabilistic system which over the Short term there is way too much Randomness. We don't know what will happen

  • Trading is filled with Uncertainties. You do not know whether a trade is going to make money. Sometimes we will win and sometimes we will lose

  • All we can do is to keep making Good Bets, a lot of good bets

  • We must honor our Stop loss to keep losing trades at minimum in order to stay in the game

  • We must ride the Winners which determine our trading success


  • Facebook Social Icon
  • Twitter Social Icon

© 2016 by aTrader