Many life activities get boiled down to a baseball analogy: three strikes and you are out.
Trading lends itself very easily to sport analogies. Baseball, with its obsession with statistics and various types of swings, is the perfect sports for such analogies.
After you apply all the potential comparisons, you will have to stop at one crucial difference between the two games: in trading you never lose, if you don’t swing.
Wealth preservation is the first rule of trading because without capital you can’t trade. Therefore, being very judicious with your trades, especially your first ones, is critical to preserve capital, minimize risk and build a buffer.
Obviously, you can become too gun-shy and never pull the trigger. That’s also a sure way to not make money. Being gun-shy can also make you hesitant and second guess your process. Developing the self-control to wait for the right pitch is one of the most valuable attributes of a discretionary trader.