You know who said those words? None other than the most interesting man in the world. Goddamn right.
For all those out there who interpreted this message simply as encouragement to drink beer, particularly of the Dos Equis flavor, you got it all wrong. It can allude to an entire array of different philosophical meanings – none of which we’ll be discussing here because I don’t know shit about philosophy, and I don’t want to impinge on the statement from a man of such caliber. Plus, let’s face it, Dos Equis is piss in a bottle.
We just want to tweak his message a little. And, here it is: “Stay hungry, my friends.”
Now this phrase goes without explanation, but nonetheless it is often overlooked in the realm of trading. To be successful long-term, you have to stay hungry, you gotta have that drive.
Two things happen to traders: we get beat, and we triumph. You all know this, of course, but it is important to examine the effects that arise after the two instances. When we get beat, depression and regret set in a little, and there is a tendency to go looking for the first shoulder to cry on to comfort the blow. When we triumph, elation fills our skull, and there is a tendency to want to bathe in that moment of glory.
Before I go further, let me say this: The best traders out here, the super traders, don’t go through any of this shit. They don’t display either reaction. The super traders take the ups and the downs in stride like it’s always just business as usual. No emotion. However, unless they were born with ice in their veins at some point early on in their life as a trader, they too rode the roller coaster.
‘Drive’ got them off it.
You may think that it is more important to have drive in those situations when you get beat, but this isn’t the case. Both situations are equally important. The reason is complacency – the complacency that later leads to fear – the fear that comes from the mindset of “I don’t want to lose again after having just lost,” or the converse: “I don’t want to lose what I’ve just won.” Both trains of thought will get you nowhere in trading.
If you don’t have the drive to push yourself after a loss, or the drive to motivate yourself to find the next trade after a nice gain, you might as well leave the table. The market isn’t going to serve up anything to someone who’s not hungry.
Win or lose, it’s all about what’s next.