How the late Muhammad Ali can help with your trading success!

We have lost yet another legend.

Not only was Muhammad Ali a former Olympic gold medallist and first fighter to win the world heavyweight title three times, he was also an inspiring, controversial and outspoken figure for life and for racial pride. 

Sure, sometimes he did sound a bit overconfident and cocky. But that's what made him the success he was. 

One of my hobbies in life is to follow these rare champions and successful entrepreneurs. And as soon as I hear or read a powerful quote, I can't help but write it down and relate it to my own trading. 

Here are four powerful quotes by the champion himself to help you with your trading career.

Quote #1: “He who is not courageous enough to take risks will accomplish nothing in life”

Whether it’s trading or investing, you have to take a risk to grow your portfolio.

After all, you’re basing your “bet” decision on whether the market will rise or fall.

The trick is to find a trading strategy which is proven over time. A trading strategy with at least a 55% to 60% average win rate, means you’ll win 6 trades out of 10.

And the risk doesn’t end there.  

You might choose a strategy where your winners are smaller than your losers.

Even with a 60% win rate, your losers will blow your portfolio because of the big losers you take compared to your winners.

You need to be courageous enough to place your take profit levels at least two times higher than what you’re willing to risk.

Only this way you’ll accomplish building your portfolio more consistently.

Quote #2: “Float like a butterfly sting like a bee”

There are only three directions the market moves.

Up, down or sideways.

And when the market moves sideways, and you’re a trend trader, this is where you can take the most losers.

This is where the stock or currency bounces up and down in a range which can cause you to take consecutive losses.

So with the quote. ‘float like a butterfly…’, I refer to your patience levels.

If your trading strategy incorporates buying in a market that is rising with a trend. You need to be able to wait patiently for the market to establish a strong uptrend, and not trade during the sideways range and vice versa.

Be patient and wait for your winning trading system to line up.

And with the ‘sting like a bee…’ I’m talking about actioning the trade.

When your strategy eventually lines up a high probability trade, take the trade without thinking twice.

Quote #3: “Silence is golden when you can’t think of a good answer”

Sometimes, you’ll find yourself looking hard for a trade while the market is going sideways.

If you tend to take more than two minutes to find a trade in the market, stop!

When you have a trading strategy, a trade line-up should stick out like a sore thumb. So rather, acknowledge that there aren’t any trades lining up and just move on to the next stock.

Sometimes the best answer, is to do nothing at all. This will save you from taking low probability trades, which can hurt your trading portfolio.

Quote #4: “Even the greatest was once a beginner”

There are no lucky breaks with trading.

Every successful trader and investor started off like any normal kid starts school.

They began with education (learning the markets), making mistakes (losing money over and over) and finally, making money through hard experience.

The markets dynamics, in terms of demand and supply, have not changed since the Tulip craze of the 1600’s. So don’t be discouraged to start trading.

Take your time and learn the methods. Whether it’s through reading financial books, technical analysis books, YouTube videos, attending seminars and so on…

I want you to remember something when it comes to trading.

You can only get better through learning and trying, as long as you make sure your school fees aren’t that high.

Don’t be discouraged by traders who are making their millions and driving fast cars. Every trader started at the beginning. The trick is to start now and succeed later.

Are you feeling empowered?

I’m sure by now, you’re feeling adrenaline rush through your veins and empowered to start trading. Trading psychology is the biggest mover you can use to feel inspired in the markets.
Just like in any game, sport, business or venture.

So, I encourage you to read Trading Tips, learn to trade the markets, join Trading Facebook Groups, watch a few YouTubes and don’t stop trying new things.

I promise you if you train your brain, practise and trade, YOU WILL find the trading master within yourself.

Always remember,

“Wisdom yields Wealth”

Timon Rossolimos