Trader Quote # 29Posted: April 21, 2013
Trader Quote # 29
“People focus too little on opportunities and too much on their problems” Sir John Templeton
==== People or in this context us, traders , fall into this trap or can, eventually. Where our problems can have a greater negative yield than the lessons learned and the value it has for the future ahead of us. Although Mr. Templetons quote is a clear and simple one, we as traders must not underestimate its deeper lesson.
To analyse Mr. Templetons quote with a little more detail, we can say that we have a number of trading situations occurring on a daily, weekly , monthly , yearly, life basis.
Call it, Markets go up , go down, our positions are positive or positions got stopped out, our account increased 23% or account decreased 9%, stretching out this logic, there are an infinite variants given in any trading day , year or decade.
The problem lies in that our trading results, our morality “kicks in” and starts obsessively “tagging” or “cataloging” all these different occurrences into a limit criteria: “bad”, “good” or even ” so so” .
“That was a great trade, I knew that was gonna happen all along the way”, “I lost money, how stupid of me…” if you know what I mean.
This “moral” system of registering our “lived” occurrences does not, in any way, add value to our trading operations in the future of this trading business. Let me explain why…
A great example i like to use is the following. Lets imagine a horrible sequence of bad trades, i mean “nightmarish” bad, money losing events, Ok, my question to you is who would you feel about this experience? Is it a problem or an opportunity for you? How do you normally process this experience?
Lets go to the obvious process, its ” horrible”, under-performing crappy (I’m being polite and generous), in reality you would say a large list of rude words in accordance to your performance. Don’t worry I have been there, but lets go to the lesson you must learn today.
Imagine lr permit yourself to exclude the moral “categorizations” or “tags” of your results (performance), try it!, I know its hard to do it this away, but if you do then , we are only ultimately left only with occurrences,in other words, a sequence of events, its just that. Our homework lies in focusing on what “experiences we can capitalize?”, what we can document?, what worked?, what didn’t work?, what can we improve?, what can we implement?, what can we learn?, what can we document?, what we can exploit?.
Remember it is a “muscle” of untagging “morality” and you must exercise it as a professional trader.
The truth is:
Its very, but very easy to complain or celebrate our trading performance. The fantastic results and the “sucky” ones.
The high-performance training lesson of today is to amplify the outcome of any occurrence “good or ” bad”. Using Risk management, if we have a streak of losing trades, the question is , what can we capitalize from this learning for our future trading?
Events occur, name it “good” or “bad” the question is, how are you going to use these experiences for the future which, at the end of day, is the only thing that’s coming! Good luck trading, as always use risk management and stop-losses. Dimitri Feria ====