welcome
Are you living a trading lie??
Are you living a trading lie or trading honesty?
Living a trading lie is all about having a gap that exist about what you should do versus what you actually do.
This Gap can originate from two sources:
Execution gap – Where there is an inability to do the right thing due to lack of knowledge, lack of organisation of self including time, or the absence of a plan
Integrity gap – where you have the knowledge, ability and plan yet fail to take responsibility for implementing your trading as you should
Irrespective of which gap exists it is the difference between the trader you are now to the trader you could, should and MUST become.
Often it is fine tuning required as many things you need will already be in place.
Signs that a gap may exist are many but may include:
- Placing the blame for trades that dont go your way on your system or the market rather than looking at your decsion making
- Not adhering to your plan in the heat of the market
- telling stories about the great trade rather than trades that went wrong - do this enough and sometimes you start to believe you are an awesome trader even your results dont demonstrate that.
- when you take a hit you move onto the next system/market vehicle
The challenge and NECESSITY is to develop honesty and awareness
Awareness of self is the first stage in taking your trading to the optimum level. It is this awareness that will create a choice and this choice that can create potential growth. you will only get this from recording all that you do in yoru trading in the form of a journal or diary..at least for a while rather than just view profit loss.
I met a guy yesterday bragging about the fact he didnt need a plan nor a trading diary..Are are you just to damn cool to have a written trading plan or keep a diary??
If you are living a trading lie, its OK most traders do or have done, moving towards this defined ‘choice-point’ to awareness and beliefs in possibilities is what will make a difference in achieving that which you hope to achieve.
Ask yourself the question..”what part of my trading practice am I no longer willing to tolerate from NOW?” ....and follow through on your decision
Living a trading lie is all about having a gap that exist about what you should do versus what you actually do.
This Gap can originate from two sources:
Execution gap – Where there is an inability to do the right thing due to lack of knowledge, lack of organisation of self including time, or the absence of a plan
Integrity gap – where you have the knowledge, ability and plan yet fail to take responsibility for implementing your trading as you should
Irrespective of which gap exists it is the difference between the trader you are now to the trader you could, should and MUST become.
Often it is fine tuning required as many things you need will already be in place.
Signs that a gap may exist are many but may include:
- Placing the blame for trades that dont go your way on your system or the market rather than looking at your decsion making
- Not adhering to your plan in the heat of the market
- telling stories about the great trade rather than trades that went wrong - do this enough and sometimes you start to believe you are an awesome trader even your results dont demonstrate that.
- when you take a hit you move onto the next system/market vehicle
The challenge and NECESSITY is to develop honesty and awareness
Awareness of self is the first stage in taking your trading to the optimum level. It is this awareness that will create a choice and this choice that can create potential growth. you will only get this from recording all that you do in yoru trading in the form of a journal or diary..at least for a while rather than just view profit loss.
I met a guy yesterday bragging about the fact he didnt need a plan nor a trading diary..Are are you just to damn cool to have a written trading plan or keep a diary??
If you are living a trading lie, its OK most traders do or have done, moving towards this defined ‘choice-point’ to awareness and beliefs in possibilities is what will make a difference in achieving that which you hope to achieve.
Ask yourself the question..”what part of my trading practice am I no longer willing to tolerate from NOW?” ....and follow through on your decision
Tags: emotion, market, pyschology, stock, trading
Replies to This Discussion
-
Permalink Reply by Tim Cholko on -
Good advice. I was lying to myself in my first year of trading. I had 30% gains immediately and then lost a devastating 60% because I thought I was a genius. Im embarassed about how stupid I used to be, but everyone goes through it I guess.
-
Permalink Reply by Mike Smith on -
Hey Tim, been there, done that, have several t-shirts, before I learned the lesson..thanks for the feedback
-
Permalink Reply by Kriston Renshaw on -
http://tradejournal.alphamindset.com/SoftwarePurchase.aspx
I use a trading journal. It is very handy. Because when you do so many trades in a day or through the week, it is hard to keep account of the losses and gains. With this I know exactly where I am and why I got there. It also helps take the emotion out of trading.
The trading practice I am no longer willing to tolerate is PANIC... I sometimes catch myself mid panic... and I will hold off from Buying or Selling... and it feels great to have made the right choice...
-
Permalink Reply by Mike Smith on
-
Fantastic points Kriston..I think you have absolutely nailed the key to this..memory of exact trading decisions is often fallible and to have it recorded makes it crystal clear when you go to review performance into why you are in and out of trades.From doing some work on reviewing what some of our clients are doing that this made 15-20% difference to returns p.a
Have tried to upload a file on some of the stuff we have been looking at in terms of journalling which suits different peoples styles for your interest. IF it doesnt attach then go to www.horizonprofessional.com.au/article.html called journal toolbox
journaltoolbox.pdf
Love the statement 'the trading practice I am no willing to tolerate...." great way to go mate..have an awesome weekend
Mike
-
Permalink Reply by Kriston Renshaw on
-
Mike, that is an interesting read.
I found myself chuckling to the very true discipline comments. Myself and discipline do not always go hand in hand, however as far as the journal goes I usually update my weekly and take a step back on the Sunday to see if there is anythng I could have done better... could I have held longer and how.
I have had a brief look at your website. Looks interesting actually, what times are these 1.5hr courses held? I am in GMT currently. soon to be CET
-
Permalink Reply by Mike Smith on
-
WST is Perth time..so at this stage 7 hour ahead so would be sunday half midday for you..you have missed the first 2 but have a look at www.horizonprofessional.com.au/oc1.html where you can revew the webinar from a couple of weeks ago..Not sure how familiar you are with options but starts really at the novice level I also got the guys to read the attached intro doc before they started..
let me know what you think and we can talk
Mopst of the guys on the course trade the Aussie market, some euorpean markets and some US as principles are transferrable
PS I can empathise completely with the discipline..It was my greatest hurdle to overcome (and still creates a challenge or two :-) on occasion) the fact that you are nailing a journal is more disciplined than most
Mike - Attachments:
-
-
options nature doc.pdf, 1.2 MB
-
-
Permalink Reply by Mike Smith on
-
PSUsed to live in Carlisle just across the water from you some years ago. Parents still there
-
Permalink Reply by Kriston Renshaw on
-
cool, you can see Carlisle on a good day.
-
Permalink Reply by Joel Weihe on -
Seems mosty the last couple days.
-
Permalink Reply by Lisa Bailey on -
Hi Mike
It's very conincidental that you have written about the 'Trading Lie'. I am not really doing the work and putting the time in I should be, but at the same time thinking how cool am I an options trader, but in the back of my mind thinking I'm not really adhering to my goals for trading. It's a bit of a roller coaster I sabotage myself, you know the more knowledge I gain the more trading I will have to do the more mistakes I could potentially make, and that scares me. I would have to say I am no longer willing to tolerate procrastination in my trading practice. Just got to keep going.
Lisa
-
Permalink Reply by Mike Smith on
-
Hey Lisa..fantatsic post..thsank you fro sharing your expereinces which I am sure you will see from above are common feelings and experiences of a newer trader (and certainly all you describe I can remeber too).,,two things:
a. you have grown so much in such a short space of time..if things dont go exactlky how we want them to we tend to forget to congratulate ourselves on what we have achieved..By stepping up to the plate and committed to continually learning you have already done more than most on this planet
b. Your key statemtn is I am no longer willing to tolerate procrastination in my trading practice"print this up, laminate it and stick it up where you trade..A lesson for EVERYONE
Keep up the great progress
Mike
-
Permalink Reply by Jason Leavitt on -
One other thing that kill traders...
- keeping themselves busy with "other things" so they don't have to face trading head on
© 2010 Created by Roger Carter.
