In a recent weblog for Forbes, I described the essence of a solution-focused approach to trading: studying your ain successes. As da Vinci’s quote suggests, it’s non exactly dry, academic study, but written report amongst desire: the wish to know what makes you lot the best you lot tin be.
Here’s an interesting observation:
When I enquire traders to tell me what they do incorrect inwards their trading to brand them lose money, most tin advert a diverseness of mistakes they make. They speak nearly chasing trades together with getting inwards at bad levels; they depict sizing positions likewise large or small; etc. When I enquire traders to tell me what they do best inwards their trading that leads them to brand money, most offering vague generalizations or simply state that they don’t brand the losing mistakes.
Even to a greater extent than to the point, if I enquire most traders to map out a detailed menses nautical chart of their best trading, starting amongst the gathering of data together with generation of ideas to the structuring of trades, administration of risk, together with the trader’s ain self-management, inwards the vast bulk of cases it would move a hard task. The trial would move a lean menses chart.
Now imagine that I laissez passer that same exercise to an executive at a successful company. You tin residue assured that at that topographic point would move no occupation generating a menses nautical chart describing how raw materials are assembled into a product; how the production is packaged together with delivered; how the production is marketed; how sales are tracked; how production changes are made; etc.
The idiot trader has no feel of process. It’s all topographic point of the pants together with randomness. The enlightened idiot trader talks nearly “following my process”, but cannot create a detailed menses nautical chart of what they do together with why they do it. That is because, for the enlightened idiot, procedure is simply a code discussion for engaging inwards about full general routines.
Successful businesses don’t “follow their process.” Successful businesses empathize that they receive got many interlocking processes, together with their character administration tracks both those processes together with their successful coordination.
An of import question: If you lot started a concern inwards your community together with managed it amongst the same rigor every bit you lot apply to your trading, how successful would that concern be?
Consider the skillful baseball game pitcher watching game films. He volition focus on the mechanics of each stage of his delivery. He volition written report his pitch pick together with the execution of each form of pitch. He volition bear witness his pitching accuracy together with the factors responsible for achieving goodness together with pathetic location. He volition written report the best agency of pitching to specific batters together with exploiting their weaknesses together with avoiding their strengths. That is written report amongst desire: the wish to dig together with dig together with dig together with empathize the drivers of superlative performance.
The idiot trader keeps no periodical together with has no construction to his or her reflection. The enlightened idiot trader keeps a periodical together with writes downwards all of his or her mistakes together with frustrations, but never transforms those observations into concrete goals, plans, together with commitments for change. An skillful concern knows its best practices, turns those into robust processes, together with tracks them religiously.
As the Forbes article emphasizes, an exclusive focus on what you lot do incorrect will, over time, aid you lot internalize the identity of a wrongdoer. In studying your successes together with turning those into solutions that anchor best practices, you lot reinforce an inner feel of achievement. There are no lifetime accomplishments that do non get down amongst daily achievements. Many, many times the answers to our trading problems prevarication inwards what we’re doing when those problems are non occurring. The start pace inwards becoming a meliorate trader is agreement how nosotros currently merchandise when nosotros merchandise at our best.
Further Reading: Solution-Focused Performance