Coaching Yourself to Trading Victory
With sporting spectacles such as the Superbowl, Winter X Games, and Winter Olympics almost here, I have been thinking a lot about the impact good coaching has on performance.
A coach leads… strategizes… motivates… and most importantly, stretches everyone he/she is responsible for to become even better.
So here is my question for you,
Are you your own coach? Are you taking your game to the next level?
Now I realize this is a huge topic, so I’ll only scratch the surface here today. Even if I wrote a 500 page manual, I’d still be hard pressed to do justice to the topic. There is just so much to cover.
But, my intent is to introduce the concept of Self-Coaching. While I’m not going to layout step by step instructions to become your own Self-Coach today, I hope to have that opportunity down the road.
What is absolutely crazy is how few people have ever considered this idea.
To be honest, I’ve found about 95% of all option traders never give thought to how they can lead (or coach!) themselves to greater success. Unless, of course, they’ve been hammered by the Market and experienced harrowing losses. This fact is really sad, that most traders have to lose a great deal before considering coaching themselves.
I strongly believe every options trader is going to pay one way or the other.
The first way is to experience HUGE losses in the Market. Or the second way (and the one with much less heartache!), is by paying those who have already set themselves at Liberty to show how they did it. It is a choice of how, not if, options traders will pay to learn.
Do you know why most traders don’t learn to coach themselves?
Because it is a discipline that takes time to learn. Coaching yourself to higher profits and greater success requires a significant investment of time. If you’re coaching yourself right now, you’re in the top 5%.
(And the statistics will show that 80% of all traders give all their hard earned money to the 20% of consistent winners.)
Most people (the 80%… perhaps even much higher than that) come to the options Market treating it like a slot machine. No thought or strategy, No game plan, No training or conditioning…just throw the money in and hope for a huge payday!
Everyone is plagued with this inclination….no one is exempt. Knowing that this is part of the human condition, don’t you think it’s a good idea to coach and lead yourself versus letting your natural human tendency take over?
I do!
It takes a rigorous mental and physical game plan to stay in the top 20% of winning traders.
Let me just warn you though…there is an enemy lurking in the shadows, waiting to sabotage your attempt to better yourself by self-coaching. That enemy is called “Change”.
“Change” is a predator with fangs that looks to devour anyone trying to break free from the unproductive ways of thinking and behaving.
Here’s how I know this is true.
Look at any exercise facility right now across America…first of the year they were packed with people attempting to fight the predator “Change”. Now they are defeated. And the gyms are wide open again. This enemy has convinced people that they really don’t want to change from their unhealthy ways.
You have to prepare yourself. Knowing there is a battle raging between your ears and you have to be willing to put forth the mental energy to fight. Take the time to script out a plan to defeat “Change” once and for all.
I’ll leave you with this one tip….
…having coached myself to defeat “Change” for more that two decades in many different arenas (not just trading), I always start with an honest evaluation.
NO SUGAR COATING ALLOWED!
Just like any great Coach would…The first step is to evaluate your player…YOU!
Set some time aside and block out all interruptions. Step outside of yourself to accurately and objectively pin point areas that need to be improved.
Begin your coaching journey with the end in mind and create a game plan that will put you in the End Zone (couldn’t resist…seeing how the Superbowl is this weekend) more than your opponent…Mr. Market and “Change”.
Just like Manning and the Colts this Sunday over the Saints.
Until next time…
Jeffrey
7 Responses to “Coaching Yourself to Trading Victory”
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Great advice Jeff!!! I have recently picked up a book on the subject that you and others may find useful. “The Daily Trading Coach: 101 Lessons for Becoming Your Own Trading Psychologist” by Brett N. Steenbarger. I am just getting started on it but I highly recommend it. It breaks concepts into small quickly digestible subjects. It is nice for applying a kiazen approach to make small changes that are easier to stick with. For those not familiar with the term kiazen, the definition I use is: Continuous Improvement — slow, incremental but constant.
Thanks for all of your efforts Jeff.
Scott B
Hi Jeff,
Love your blog. I completely agree with you on coaching. Unfortunately I had to experience a loss in my portfolio to put more effort into proper coaching. I look at trading like a fight in a coliseum, me against the beast (Market). Am I mentally and physically prepared to win or am I just swinging my sword from side to side hoping to strike my enemy. Thanks for all the info.
Ken
Hey Ken,
Thank you!
Funny seems all of us have to experience a little dose of pain before we make the necessary changes. Been down that road to many times. Glad you are here.
JZ
Hey Scott,
Thanks for book recommendation. Anyone who trades options needs self-coaching.
JZ
This topic makes for great debate. This ties into Jeff’s first posting about “Change or Transformation.” While making permanent change can be difficult I would disagree that it has to take time.It just takes enough reasons.Let me explain; Say 2 people are trying to give up smoking, we’ll call them smoker A and smoker B. Why is it that smoker A can put the cigerette down and never look back while smoker B puts the cigerette down but constantly struggles between the addiction, in and out of rehab, and tries all of the gimmicks available? Well, the answer is smoker A changed his/her “identity” while smoker B only changed his/her “behavior.” This is what Jeff was talking about when he refered to people going to the gym early in the year but giving up shortly after. To make an identity change, a permanent change, one has to relate more pain(reasons) into not changing than to the pain of staying the same. If you look in the mirror and say to yourself,”I only have an extra 10 pounds of “love” to lose, then that 10 pounds will always be there. Now if you look in the mirror with your shirt off and grab the 10 pounds around your waist and mash it together so you can really take a good look at it and say,” look at this!, this is disgusting!, repulsive!, and not sexy!”, then you are creating in your mind more reasons (pain) into not changing, then to your present state. Our minds are programmed to seek pleasure and avoid pain in everything we do. So it’s what we link to pleasure and pain that makes the difference. If one is trading options with only a behavior change and not an identity change, that trader will forever struggle and will eventually disappear. I accidently posted this in the gorilla blog. (sorry for the length of this posting Jeff)
Likin’ the blog alot Jeff, but gotta tell ya it’s the Saints ALL THE WAY BABY!!!! Take care and keep the knowledge coming!!
Hi Jeff,
I could share many thoughts, but one comes to mind. A broker once called me (from my brokerage), suggesting what appeared to be an opportunity on a futures spread. By this time in my trading experience I had decided – at least intellectually – to take sole responsible for my own trades. But, the attractiveness of a “professional’s” recommendation got the better of me. Well this “professional” violated one of the cardinal rules by legging me into the spread. As a result, by the time I was filled on both legs, I was already in a losing position. I was furious. But, after I calmed down, I simply pointed the finger right back at myself – for violating my own cardinal rule. The $ loss was relatively small, and I chalked it up as a cheap, but very valuable and powerful learning experience. The most valuable asset I have as a trader is the “right stuff” between the ears.
Thanks for the great stuff..
DH