By: Katie Gomez

We all know luck has to be on our side when it comes to the market. Luck is a fickle but underrated factor needed for trading success. 

As August 26th, National Make Your Own Luck Day, approaches, it’s the perfect time for traders to reflect on how this concept applies to the world of stock trading. While luck can play a role in short-term market movements, successful long-term trading is far more about skill, preparation, and mindset than mere chance. Let’s explore how you can “make your own luck” in the stock market instead of just surrendering your control and agency as a trader to the unknown. 

Education is Your Four-Leaf Clover

The luckiest traders are often the most knowledgeable. Continuously educating yourself about market trends, economic indicators, and company fundamentals is like planting a field of four-leaf clovers. The more you know, the more likely you are to spot opportunities that others might miss.

Preparation Beats Superstition

Instead of relying on lucky charms or gut feelings, successful traders prepare meticulously. This means having a well-researched trading plan, setting clear entry and exit points, and understanding your risk tolerance. When opportunity knocks, you’ll be ready to open the door.

Consistency Creates Serendipity

Luck favors the consistent. By sticking to your trading strategy and not being swayed by emotions or market noise, you create more opportunities for favorable outcomes. Consistency in your approach allows you to capitalize on the law of large numbers, where positive expected value plays out over time.

Risk Management: Your Lucky Rabbit’s Foot

Proper risk management is the trader’s true lucky charm. By carefully sizing your positions and using stop-losses, you protect yourself from catastrophic losses and live to trade another day. Remember, preserving capital is just as important as growing it.

Adaptability: Bending Luck to Your Will

The market is always changing, and lucky traders are those who can adapt. Stay flexible in your strategies and be willing to adjust your approach as market conditions evolve. This adaptability allows you to create your own luck by aligning yourself with market realities.

Networking: Expanding Your Lucky Circle

In trading, as in life, who you know can be just as important as what you know. Engage with other traders, join trading communities, and attend financial seminars. These connections can provide valuable insights, strategies, and even potential trading opportunities.

Persistence: The Luck Multiplier

Every successful trader has faced setbacks. What sets them apart is their persistence. By viewing losses as learning opportunities and continuing to refine your approach, you increase your chances of success over time. Remember, even a broken clock is right twice a day – but a persistent trader creates far more opportunities for success.

Mindset: The Foundation of Trader’s Luck

Cultivate a positive, growth-oriented mindset. Believe in your ability to learn, adapt, and succeed. This confidence will help you stay calm under pressure and make rational decisions, creating more “lucky” outcomes in your trading.

On this Make Your Own Luck Day, remember that in trading, luck is where preparation meets opportunity. By focusing on education, preparation, consistency, risk management, adaptability, networking, persistence, and mindset, you’re not leaving your trading success to chance. Instead, you’re actively creating an environment where “luck” is more likely to favor you.

So, as you approach your next trade, ask yourself: “Am I relying on luck, or am I making my own?” The answer to that question could be the key to your trading success.

Happy Make Your Own Luck Day, and may your trades be ever in your favor!