Sunday, August 23, 2009

Social Networking and Trading Success

I start with a few basic premises:

* I have something to offer selected, others in the trading world;

* Selected others have something to offer me;

* I don't know who those others are, but I can find out.

So every week, I make it a point to "cold call" at least one trader or industry professional who seems to be a kindred spirit.

* Half of all my contacts are not returned;

* Half of the contacts returned result in polite thank yous and nothing more;

* Half of the remaining contacts result in pleasant social contact and nothing more;

* Half of the pleasant social contacts peter out after a short while;

* The remaining (roughly one in sixteen) contacts prove to be highly mutually fulfilling.

So every year, I add on average three professional soulmates to my network, as they add me to theirs. We learn from each other and further each other's work; we keep each other going during tough times and are there cheering on the sidelines during times of victory.

With 15 out of 16 contacts ultimately "failing", you could say that I'm not very good at networking.

With a network that grows year over year, you could say that I'm a raving success.

Both are true.

It's the "failed" outreaches that lead to the successes.

How similar to trading: You have to lose to win. And you have to embrace the losses to find the victories.