1) They are trading a market and time frame that lacks opportunity;
2) They are trading a method that does not possess an objective edge in the marketplace;
3) They have a promising market, time frame, and method, but are not executing it properly.
Of these reasons, #3 is the most frustrating for traders. They feel as though they have the tools to succeed, but they themselves get in the way of their own success. Many times this is because emotional factors interfere with sound decision-making.
Archives of “sound decision” tag
rssTrading Rules from -Full Metal Jacket
I look at charts so often, I usually have to have something on in the background to keep the rest of my brain from rioting. Typically, that “something” is usually a movie or some music, and today I put in Full Metal Jacket (which, like most of my DVDs, I’ve seen many times).
Semi-watching the movie made me curious about the Marines, and I found this really interesting code of principals, which I’ve put below. It’s an impressive list, and I think every element shown here is relevant to trading. Please read it:
INTEGRITY
Uprightness of character and soundness of moral principle. Absolute truthfulness and honesty.
KNOWLEDGE
Acquired information, including professional knowledge and understanding of your Marines.
COURAGE
A mental quality that recognizes fear of danger or criticism, but enables a Marine to proceed in the face of it with calmness and firmness.
DECISIVENESS
Ability to reach decisions promptly and to announce them in a clear, forceful manner.
DEPENDABILITY
The certainty of the proper performance of duty.
INITIATIVE
Seeing what has to be done and commencing a course of action, even in the absence of orders.
TACT
The ability to deal with others without creating offense.
JUSTICE
The quality of being impartial and consistent in exercising command.
ENTHUSIASM
The display of sincere interest and exuberance in the performance of duty.
BEARING
Creating a favorable impression in carriage, appearance, and personal conduct at all times.
ENDURANCE
The mental and physical stamina measured by the ability to stand pain, fatigue, distress, and hardship.
UNSELFISHNESS
Avoidance of providing for ones comfort and personal advancement at the expense of others.
LOYALTY
The faithfulness to country, Corps, unit, and to your seniors and subordinates.
JUDGEMENT
The quality of weighing facts and possible solutions on which to base a sound decision.
6 Personality Traits and impact upon trading
* Locus of control – The degree to which a trader believes that the ability to be successful is within his or her control;
* Maximizing tendency – The degree to which individuals seek optimum outcomes from their decisions, not just outcomes that meet or exceed expectations;
* Regret susceptibility – The tendency to look back on outcomes of decisions and focus on negative aspects, creating regret;
* Self-monitoring – People’s tendency to track and control their own thoughts, feelings, and behaviors;
* Sensation seeking – The degree to which people seek varied and stimulating experience;
* Type A behavior – The degree to which individuals are driven to achieve. (more…)