Trading Mindset: The Stockdale Paradox.
How to Combine Optimism and Realism

Main Topic Notes

The episode explores how understanding the concept of the Stockdale Paradox, named after James Stockdale, a US Navy pilot who was held as a prisoner of war in North Vietnam, can help traders achieve success.

The Stockdale Paradox is a combination of two attributes.

  1. An honest assessment of the current reality
  2. An unwavering belief in ultimate success.

This seemingly contradictory attitude can help you tackle the immediate road-blocks in your trading and yet stay motivated and focused on the overall vision.