Statistics say that 90% of the people who enter the stock market as an active trader fail. I understand the harsh reality this statistic is showing that whenever a person enters stock market to earn money, the person is 90% probable to fail.
Statistics is the grammar of science. – Karl Pearson
I agree with Mr Pearson here that statistics is the grammar of science. But I being a student of science, like to reason. I would like to go to the depth of this statistic. What exactly is the reason behind this, for 90% of us to fail? And only 10% achieving what they sought after?
Let’s examine and compare these 90% and 10% of people. The differences are pretty evident:
- The failures lacked education and the knowledge of the stock markets.
- The failures lacked a plan and a vision.
- Most importantly they lacked the mentality. They thought of it as a gamble and wanted to play by luck.
Whereas the successful, the 10% which by the way includes all the market wizards had all three: Education, Vision and Mentality. Did you notice the common theme in all the three factors? All the three are internal and not external factors. These are not something people are born with, they inculcate these with time, patience and continuous effort. The recipe is quite simple, it always has been.
In any field, we do what the best have done and avoid what the failures and the average people did and we too become the best. Need an example? Kobe Bryant. He copied, literally copied the basketball legend Michael Jordan. Because he wanted to be the best, he learnt from the best. Its possible to be the best, to be successful, to be the 10%, we have just got to put in the effort.
Now when somebody starts to believe, people then say blunt things like, its very risky. Well,
Risk comes from not knowing what you’re doing. – Warren Buffett
Need I say more?
And the one thing that somehow discourages people ever after knowing that achieving success in stock markets is possible when people call other people successes luck. Its plain luck because the percentage of success is too low. Statistics are never wrong they say.
Luck is statistics taken personally. – Penn Jillette
Take it personally, work on it, and luck will change. The statistics will also change. As one of my good friend, Yash told me just yesterday that hard work not only beats talent it also beats luck.
Join the community and Let’s be the 10%.