Here are 3 best practices that I detect amid the best traders I know too live with:
* Increase your exposure to novel too unlike ideas – The worst traders are caught inwards confirmation bias: they seek views that bolster their own. The best traders I know are intellectually curious: they seek out fresh perspectives, too that helps them generate fresh trading ideas. After all, you lot can’t expand your heed without challenging your mind. What is your daily too weekly physical care for for heed expansion? A swell means to growth your exposure to novel too unlike ideas is to verbalize alongside novel too unlike people too read/listen to unlike online offerings. Check out The Enterprising Investor site from CFA too its card of resources from unlike authors. Check out the podcast links, longform links, too question links via Abnormal Returns. There are a lot of smart people represented on those sites that tin assist feed your brain.
* Spend equally much fourth dimension learning from your trading equally you lot truly pass trading – The ratio of exercise fourth dimension to surgical physical care for fourth dimension is a swell predictor of elite performance, whether amid Olympic athletes or chess champions. If you lot lose inwards your trading, was it because of getting ideas incorrect or was it because you lot traded audio ideas poorly? Either choice leads to useful corrective action: looking at novel data that tin assist you lot acquire ideas right too developing trading best practices that assist you lot optimally implement your ideas. Experience itself is non a teacher; nosotros acquire exclusively past times actively reviewing too reflecting on experience. If your trading is non instruction you lot specific lessons that you lot concretely implement, you lot are non on a learning bend that tin atomic number 82 to elite performance. A big purpose of the Trading Psychology 2.0 book is devoted to learning from winning equally good equally losing performance: that’s what uncovers the best practices that atomic number 82 to best processes.
* Manage yourself, non only your run a endangerment too your positions – An insightful trader this calendar week took a difficult hold back at his recent trading too came to the determination that he was non trading at his best because he was non keeping himself at his best. What he constitute is that he performs at his peak when he is emotionally too physically conditioning himself for peak performance. That’s what creates the intensity of focus that picks upwards the adjacent swell idea; it’s also what generates the liberate energy needed to remain resilient inwards a drawdown. Do you lot convey a game innovation each solar daytime too calendar week for making the close of your liberate energy level, your relationships, too your state of heed too body? The live nosotros do on ourselves is live that helps us acquire ameliorate performers; rattling oft our trading slides when our self management slides.
Notice how those 3 best practices combine to do a comprehensive preparation program. It’s when nosotros intensively prepare for success that nosotros create the life mirrors that assist us internalize confidence too resilience.
Further Reading: Training For Success