Why having a proper mindset and principles is important

You are where you are because of your beliefs, mentality, and thought process. Sure, luck plays a big role in each person’s success and failure. In a way, “luck” = randomness. E.g. if you have a 80% chance of success, the probability of “bad luck” (e.g. 2 failures in a row) is still 4%. 4% is not zero. It happens from time to time.
However, we cannot control luck. Aside from our actions, the only things we can control are our beliefs, mentality, and thought process. Our beliefs, mentality, and thought process control our actions. So let’s focus on what we can control and accept the things that we cannot control.
If you are in this Membership Program, you are probably not new to investing or trading. You have probably been in the markets for at least a few years. If you want to get to the next level, you need to prepare your mindset so that it is suitable for the next level.
Let’s look at the most successful people in this world. Almost all of them talk about the importance of “principles”, meditation, and focusing on mindset. Ray Dalio literally wrote a book titled “Principles”. Past a certain point, there is only so much HOW that you can learn. All the how-to guides in the world will only take you so far. Past a certain point, you need to create a proper mindset to develop your OWN how-to guides.
In investing as in life, in order to be successful, you need to think differently. To put it simply, if you want to be better than others (ie. the average), then you must do something that’s DIFFERENT from others. By definition, if you think and act like everyone else, then you will end up just like everyone else.
That’s just simple logic.
Many investors and traders fail to outperform buy and hold over the long run not because their strategy doesn’t work, but because their mentality and mindset are not approrpriate. Since they have a bad mindset, that bad mindset creates a bad strategy. If you want to be successful, you need to first tackle the root of the problem (the mindset) and then tackle the symptoms (the strategy). It’s like cancer. If you don’t attack the root of cancer, it will keep coming back.

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