The Focus of the ‘Transformed’
The other day, something “hit” me.
It was a thought that is a perfect follow up to the post from the other day called, Change vs. Transformation.
So, I was sitting in my “new secret headquarters” talking on the phone with a new trader. As they always do, he began to pepper me with a gazillion questions.
The usual stuff…things like…
“How long do you think it’ll take me to really get this down?”
“How much money do you think I can make this month?”
As it went on for a while, I suddenly realized: This guy hadn’t been Transformed in his thinking.
And there was a big glaring tell tale sign: Quite simply, he was focused on the wrong thing.
See, after years of talking with successful (and transformed!) traders, one of the biggest characteristics is how differently they think.
They realize that profitable trading is not about conquering every tick of the market, but rather it is about focusing on trading well.
Now don’t get me wrong, I’m not saying that you can’t master a technique or strategy. And it certainly does not mean you won’t experience the unbelievable feeling of excitement when a trade goes ‘your’ way.
It just means that they have set their sights on being a great trader, not on the dollars and cents. This means following a clearly defined trading plan; planning the trade, then trading the plan. When this happens, the results and profits will take care of themselves.
Another way to think about it is like this:
Think of a baseball player getting ready to hit the ball. He steps up to the plate with the mindset of swinging as hard as he possibly can at every pitch… He forgets about his form and follow through…. The outcome? He’s back on the bench in 3 pitches…struck out!
However those players who are completely relaxed… focused on how they’re weight is positioned… nice loose grip… eye contact on the ball… keeping the bat level as they swing and let their strength come from the uncoiling of their body… will almost always make contact with the ball.
Their focus is on swinging well and with proper form, knowing the results (hitting the ball or getting on base) will take care of themselves.
Once either the trader or the baseball player, begin to focus on the results, their game will deteriorate.
For the trader that means losses and sometimes they become so frustrated that they just throw in the towel all together and quit.
This is a common story that I hear from so many who have failed to become completely Transformed. They believe that they’re part of a small minority who don’t achieve success at trading, when it has nothing to do with that. They just need to change their focus. Fortunately, that is not as hard as it sounds.
So take a moment today to take a look at where your focus is.
Are you thinking like the Transformed?
Don’t just sit on your hands…let me know what you think…Feel free to agree or disagree. But let it be known here, right now, so that others may learn and grow to become the best they can possibly be. Or comment on your struggle of thinking about results and let’s see if someone out there has the answer you may be looking for.
Have a great weekend!
Jeffrey Z
8 Responses to “The Focus of the ‘Transformed’”
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I think its the difference between those who pursue trading as a profession vs those who are looking for easy money. That said, I can understand why someone new would ask how much they can make and how long it’ll take. Almost all young people ask that, and rightfully so, as they go into college and look to their future. Once someone approaches trading as a profession, vs some quick money lottery scheme, the odds of them being successful go up dramatically. The next hard question? What >kind< of trader does he want to be?…………
Hi Jeff,
I couldn’t have agreed with you more. This is exactly what happens with every trader. It also had happened to me. I used to focus lot on the end results of profit and loss. I have chnaged my thinking a lot after I watched your video regarding learning from past trades. I went back and jogged down all the trades and then started learning from each trade. Because of this, I have become more disciplined in my trading. Today, I focus only on two things, Why am I taking a particular trade and what is my trading plan for that particular trade. This renewed focus has provided a great sense of relief since I don’t change my plan but I learned from past trades and become a better trader that can handle any situation.
Thanks for your post..
Dharmesh Shah
Thanks, Jeff.
This is exactly what I needed to hear right now… as well as a few months ago. I started off with a bang and wildly successful, both paper trading and real and at one point thought I might have been close to winning the Apple TV.
In June-09, I was put in a situation where I had to begin focusing on $’s results vs % results because I needed monthly income from this. Unfortunately, I let the plan and the technical aspects of trading become secondary. Yes, this does lead to “gut” trading, more risky trades, trading from the hip, losses, not managing account risk properly, trading with my ears not my eyes, etc… and ultimately confusion and frustration. (Kind of feel like I’m in an AA group right now… lol)
I became approaching trades in an “afraid to lose” mindset and decided to “quit” for a few months to “reset” my head and newly acquired habits. If I didn’t change something and quickly, I would not be able to do what I’d always wanted to do for long.
I went back to paper trading account after “the quit” and have only done a few trades in live. I want to make sure that when I go back in, full guns, I’m thinking like the Transformed.
It is my undying goal to Trade full time, just no longer pressing myself for it to happen “tomorrow”. Patience, diligent training and God’s plan for me… are my new mindset.
Hope this helps someone. And Jeff, certainly correct me on any of my thinking here that you feel should be different…
Have a good day, All.
Hey Darmesh,
Good to see you here on the blog. Isn’t it amazing how that one simple act of the writing things down in a trading journal helps clear the mind? Every time I shoot from the hip I get burned. But when I focus on trading well, and planning out in detail what I’m going to do…Amazing Difference!
Are you using the trading journal worksheets that I put in the membership site?
JZ
Cliff…You are on the right path. Thank you for taking a moment out of your busy day to post this. I guarantee someone will benefit big time. Are you using the trading journal worksheets in the membership site?
JZ
Jeff,
This reminds me of the folks who trade without a plan or any idea about managing risks.
It’s been said that once a trade is placed, the only thing you can control is when you you get out. You can’t control the prices or their direction, you can’t take a “do over” on the entry.
You can only manage your Take Profits and Stop Loss strategies.
So, like the baseball player who can only control the fundamentals of executing his swing, the trader can only control the fundamentals of executing their trade strategy.
Once at the plate, or at the computer screen, both have to rely on their training and practice to execute their game with precision. The batter hits the ball, the trader takes the trade, yet, neither can be certain of the outcome of any particular “at bat”.
The fly ball could get caught, the great trade setup could turn south.
But like the player and his stats, the trader who trains and executes with precision will eventually earn the highest “batting average” and salary.
As author of “Awaken Your Speculator Mind,” it’s refreshing to see someone else believing the importance of trader mindset. Let me add, though, that trader transformation is also an ongoing process, not a final destination. – Good article!
When I stopped aiming for Home runs (big killings using directional trades) and started focusing on base hits (smaller but steady credit spreads where I don’t have to be 100% correct on direction and timing) I stopped losing money and started making steady income every month. Thanks Jeff.