If you asked any trader or entrepreneur why they chose their path, the answer would likely be the same: to create a life of wealth and success, not endless hustle and struggle.
Even if money isn’t the primary motivator, there must be a meaningful payoff to make the journey worthwhile.
After all, diving into high-risk worlds like trading or entrepreneurship with no hope of reward would be madness.
People take on these challenges because they believe the risk and sacrifice will lead to a better life. They aim to become a “Topdog,” not remain stuck in the grind of “Underdog” purgatory.
The key difference between achieving a Topdog lifestyle—however you define it—and staying trapped as an Underdog lies in mindset.
Unfortunately, many traders and entrepreneurs cling to an Underdog mentality far longer than it’s helpful, severely limiting their progress and success.
When the Odds Are Stacked Against You
When you are starting out in trading or entrepreneurship, it’s natural to have an underdog mindset.
You’re new to the game, you have a lot of skills to learn and you are looking to highly successful people who are much further down the path for inspiration as to what might be possible for you to achieve.
At the beginning, the odds are objectively stacked against you— failure is statistically more likely than success.
According to the US Bureau of Labor statistics, 45% of businesses fail within the first 5 years of opening. And according to research by Barber, Lee and Odean (2010), only 1% of day traders are able to consistently profit net of fees.
The problem is, when you cling on to the underdog mentality for longer than is necessary, you cement your underdog positioning in the pecking order of “success”—it becomes a self-fulfilling prophecy.
What starts as a necessary phase can turn into a limiting belief that keeps you stuck.
The Consequences Of Identifying As An Underdog
Your actions shape your reality, but your beliefs, thoughts, and emotions drive those actions.
Repeating narratives like being a “Victim,” “Loser,” or “Underdog” creates a lens through which you interpret the world. This lens influences both the actions you take and how you react to external events.
So let’s say you are running the story of being the Underdog unconsciously in your mind—you are then more likely to take Underdog actions such as:
- Downplaying your potential: You believe that because you have only been in business for a short amount of time, people won’t resonate with your product as much as a competitor’s product and you adjust sales expectations accordingly (Underdog)…instead of acknowledging the quality of your offering and seeking every possible pathway to maximise sales in the first year of business (Topdog)
- Excusing poor habits: You buy into the idea that breaking your trading rules is something every trader experiences and that it eventually gets ironed out with time in the market (Underdog)…instead of believing that you can eradicate indiscipline early by working on your trading psychology (Topdog).
- Overvaluing hustle: You sacrifice personal life, relationships, and health in the name of grinding (Underdog)…rather than designing a sustainable lifestyle and business model from the outset (Topdog).
An Underdog mindset leads to Underdog actions, which reinforce Underdog results. Breaking this cycle is crucial to achieving Topdog success.
Underdog Versus Topdog Mindset
The Underdog mindset thinks that by taking the same quality of actions, the results will someday magically turn in their favour.
By contrast, the Topdog thinks with the mindset of someone who is already crushing it. They work smarter instead of harder and find solutions that elevate their external reality to the level of their internal self-concept.
That’s not to say that having a Topdog mindset equates to having unrealistic expectations around the effort or timeframe involved in success.
It’s more the case that because you are taking Topdog actions, you increase the likelihood of capitalising on pathways and opportunities that can accelerate your progress and lift you to higher levels of success.
The Underdog Comfort Zone
There is a reason why people feel more comfortable in the underdog position. When you are an underdog, you have nothing to lose and everything to gain.
If you fail? Well that’s what the statistics predicted anyway—it wasn’t your fault. There is no massive threat to your ego or self-concept to be chasing success from a standing start.
If you succeed? You have beaten the odds and established yourself as an extraordinary player in the game.
When you are a Topdog, however, success is expected. It’s not a clap-worthy moment if you maintain lofty revenue targets or support your family with your annual trading profits—it’s the minimum expectation that you consistently perform under intense pressure.
If you slip up? Take a few bad trading losses or miscalculate a pivot in your business and drop below your usual standards?—the perceived “failure” can feel magnified.
There is more pressure and a bigger potential threat to your ego to be in the Topdog position. Not to mention additional pressure and stress as you become a target of other people’s envy and jealousy.
This is the reason why some sports teams always perform better when they are up against an opponent who are cast as favourites. The team who are not expected to win are actually walking into that match with less pressure on their backs than their opponents.
The Underdog team’s job, from a psychological perspective, is easier.
Becoming a Topdog
If you want a Topdog lifestyle, you need to cultivate a Topdog mindset—and that includes embracing the additional pressures that come with success.
Muhammad Ali exemplified this approach when he declared, “I am the greatest” at just 22 years old. This bold proclamation came before he achieved massive success, yet he understood that phenomenal results start with an unshakable belief in oneself.
As he later reflected:
“I said that even before I knew I was. I figured that if I said it enough, I would convince the world that I really was the greatest.” – Muhammad Ali
To develop a Topdog mindset, focus on these three steps:
- Visualize Success. Use your imagination to create a vivid picture of the person, achievements, and lifestyle you want. Regularly revisit this vision, as research shows the brain processes mental imagery much like it does real experiences. This practice helps align your thoughts and actions with your goals.
- Be Task-Driven, Not Ego-Driven. Prioritize the quality of your actions over attaching your self-worth to outcomes. Focusing on consistent, high-quality effort ensures that the process itself propels you forward. Results will follow naturally.
- Practice Being The Person You Want To Become. Identify the attributes, habits, and beliefs of the person you aspire to become. Will they wake up earlier, invest in personal growth, or balance work and family? Begin embodying these traits today. Success flows from aligning your current actions with the person you aim to be.
Final Thoughts
The transition from Underdog to Topdog isn’t just about external achievements; it’s an internal evolution.
By shifting your mindset and aligning your actions with your aspirations, you can break free from limiting beliefs and build a life that reflects your full potential.
Start thinking and acting like a Topdog today—your future success depends on it.
Three Ways I Can Help You Master Your Mental Edge
Want to learn more?
- Subscribe to The Extra Edge Newsletter: Join my weekly newsletter for Traders and Online Entrepreneurs. Each week, I deliver actionable tips and insights directly to your inbox to help you get the mental edge and win bigger in business and in life.
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