No issue so pervades the trading psychology literature as that of “discipline”. It is very common for traders to lay their plans and define their setups, only to find that their actions undermine their careful preparation.
A good deal of the advice dispensed by trading coaches and psychologists addresses this discipline problem.
But what if the lack of discipline is not a problem? What if we view departures from trading plans and intentions as *information*, not as weakness? As it turns out, those departures can be quite informative.
You see, we naturally gravitate toward the nexus of our values (interests), talents (native abilities), and skills (acquired competencies). On average, we tend to enjoy doing what we’re good at and we tend to build skills when there is a foundation of talents to support them. The artist who spends long hours at the canvas doesn’t have to draw upon “discipline” to sustain an interest in painting. The hard work is hard play: the discipline stems from a devotion to a craft–and to the ability of that craft to crystallize the artists’ interests, talents, and skills. (more…)
Archives of “devotion” tag
rssJust Be Yourself
Success in all aspects of life seem to follow those who do not try to act like someone else, but rather have a foundation of knowing who they are and act in that manner.
Many traders seem to want to act like other traders who have recently had a string of successes instead of being committed to their own strategy and trading style.
To be the best we can and have consistent success in trading takes a devotion and passion to learning our strengths and weaknesses and applying our skills to match up with these understandings.
Whether you are a risk taker or very conservative, both styles can reap profits as long as the trading matches with that personality. Just be yourself and let the results take occur.
WHAT WALL STREET CAN LEARN FROM COWBOYS
James P. Owen, a 40 year veteran on Wall Street, has written a interesting book entitled Cowboy Ethics: What Wall Street Can Learn From the Code of the West. In it he lists the 10 codes of the working cowboy, explaining how each code can be a source of inspiration for all those involved in Wall Street, from traders to institutions. Along with the message are beautiful photographs throughout by David Stoecklein. You could actually classify this as a trader’s coffee table book. Here are the codes:
1. Live Each Day With Courage. Real courage is being scared to death and saddling up anyway, setting aside the fear of the unknown knowing there is work to be done.
2. Take Pride in Your Work. Cowboying doesn’t build character, it reveals it. Stock trading brings out what is already there: pride in the preparation.
3. Always Finish What You Start. When you’re riding through hell…keep riding. Good stock traders, like cowboys, never quit in the face of uncertainty.
4. Do What Has to be Done. The true test of a man’s honor was how much he would risk to keep it intact. Stock trading is about taking responsibility for decisions and results, just like the cowboys.
5. Be Tough, But Fair. The Golden Rule was nothing less than a key to survival. Cowboys always treated others with respect, especially those who differed. Should we not do the same, whether bull or bear?
6. When You Make a Promise Keep It. A man is only as good as his word. You have no one to trust but yourself and when you have rules they are there for you to follow. If you do not, then you have broken a promise to yourself. Same with traders as with cowboys.
7. Ride For The Brand. The cowboy’s greatest devotion was to his calling and his way of life. If you have clients, the clients come first; if you have family depending on your discipline, then they come first. Period.
8. Talk Less and Say More. When there’s nothing more to say, don’t be saying it. No room for bragging or boasting out on the range or in the market. Your work, devotion, and steadfastness speaks for itself. Enough said.
9. Remember That Some Things Are Not For Sale. To the cowboy, the best things in life aren’t “things.” What matters most on the range and in the trading room is not what money can buy but what can’t be bought. Reputation is all that really matters.
10. Know Where to Draw the Line. There is right and there is wrong, and nothing in between. Insider trading, whispers, rumors, secret deals behind close doors, and all manner of questionable activities may be all around us but we do not have to embrace them as our own.
Of all the places to learn a few lessons about investing and ourselves, is it not refreshing to find a few on the open range from a time not so long ago?