Pass or Fail

You know how occasionally a professor will give you a test that is simply pass/fail. It's easy right? I mean the stress to perfom is a bit higher, but in the end you either did it or you didn't. That's how I look at life all the time, there aren't levels of success only success or failure. There are aspects where this is good because it means that I am driven to excellence, however there are a lot of gray areas in real life that get overlooked because of this perspective.
Honestly it's kind of a poor way of viewing things because I can never rejoice in any small betterment, and I'm often critical of those who are experiencing failure of any kind. In my mind the presence of failure is the absence of success. I hate it.
Life the way I see it is pass/fail and I'm failing. And I don't know how to change my view so that life is more rewarding.