
(This is Part 6 of the Great Expectations Series for traders. Be sure to read Parts 1-5 in case you missed them!)
In the wild, adaptation is the key to survival. No, I haven’t lived on the plains of the Serengeti or in the Amazon Rainforest, but I do watch Animal Planet and the Discovery Channel! Almost every program showcases a particular species which seems to fit perfectly into its environment, and by now you ought to be seeing where I’m headed with this.
Throughout this series, we’ve reviewed numerous elements which combine to form your expectations, but they’re all worthless if you’re unable to survive out there.
Successful trading requires adaptation. The market is wild, often running on pure emotion and very little logic. There will be times when you can do no wrong, but there will also be times when every trade feels like a struggle. Being willing to change, expecting change, and learning how to change will be the keys to your survival.
Your adaptation will be needed in a few areas: your method, your position sizing, and your personal spending. Let’s take a closer look at each one.
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