The Focus of the ‘Transformed̵...
Posted by
Jeffrey Ziegler in
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January 29, 2010 |
8 Comments
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…
(more…)
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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.