Behaviour

Posted on Posted in General Rambling

So its been just over a year since i started this blog and one of the first topics i started to delve into initially was mindset after reading mark douglas trading in the zone a couple of times… a year later on and i think its something i need to evolve and develop a little more.

As almost anyone with some trading experience will realise, and if they don’t they really should! having the correct frame of mind and behavoural traits and impulses is the difference between winning and loosing aswell as winning and winning big!
It’s so easy to be in a good position and still loose aswell as being in a loosing position and still break even or even profit. The one thing it comes down to ultimately is US and how we behave, which is obviously driven by how we feel and react to a certain set of circumstances. When you look at it like that its no wonder the guys that have been doing this years are far better than those who have just started out, chances are some of their methods may be the same and they may not even have far superiour knowledge but the difference is they just ‘do the right thing’ in any set of circumstances through tireless hours of screen time and making those mistakes again and again.

The good news is its not just a case of making lots of mistakes before you can get better, however i do think its important to make a conscious effort to spot what your doing in your own behavioural traits whilst trading aswell as the effect the enviroment is having on you at that point in time. From there onwards its just a case of picking out the counter productive issues and replacing them with the more productive… this reminds me of a quote ‘jimrobo’ pointed out to me very early on when i started on the geekstoy forum when he said something like the full time traders are creatures of habbit that like to do things often each day in a certain sequence before they trade etc, i know of one that likes to meditate…. suppose the point he was making is its important to have the correct enviroment to operate in and make sure your in a mindset condusive to trading success!…. only took me 18 months to get what he meant fully haha.

Thinking about it along my journey so far many wise ‘pro’ traders have offered words of wisdom and advise on their way and the one thing they have in common is they all come from a similar attitude which in turn obviously feeds their mindset and behavioural patterns towards trading… hope they don’t mind if any are reading but here are a few that always rattle through my head from various individuals, (as i remember them but you should get the idea)…..

“it only takes seconds to make money, theirs no need to chase it” – Jack Birkhead

“you’ve got to look at the bigger picture and go more long term, short term results are not important” – Millionaire Fund

“making small money is not boring to me, when has making money ever been boring?” – Leonthefixer

“take your time, being patient often works out better” – bazbaz

This sort of attitude is all part of the success in my opinion, i have pondered on it alot and its not just these comments but also what the successful individuals tend to say. Its always an positive, optamisitic grateful attitude they seem to have.
I was left thinking about this and the way these people are after a conversation with my father not so long ago on the phone, he is in the last stages of studying phsycology and its often good to bounce ideas about the way i feel trading off him even if he dosent get it fully!
It’s just like successful people in all walks of life, the ones that are often most successful are the ones that do it for the right reasons, perhaps not purely to make money but because they enjoy what their doing? a good example might be Warren Buffet worth $59 billion but still he doesn’t live in a rediculous mansion and drive about in a ferrari…. i’ve just ordered his biography so ill let you know how that goes.

I think the cycle i talk of in previous post is linked into a distinct lack of gratitude, a trait within me, its almost like i switch between states. I can relate it to playing computer games as a youngster… at first i would take a period of time to learn and understand everything and the best ways to get around problems and win, then once i reached a level of winning all the time the ego would come out! in trading though this don’t work particularly and is counter productive, a stumbling block to say the least. The difference being with a computer game you can always turn it off and start again so it has no effect on you, however with trading its not quite the same when you’ve just blown £130 in one race… so for now i know of a couple of little areas i can start to work on! mid last year i was working on some techniques to get me into the right place mentally before and whilst i traded, i think it will be a good idea to revisit them and possibly build on them as they worked for me before…. i just stopped doing them when i was making good cash…… typical!!

The other thing to remember is the markets are constantly changing month on month and to not accept and remember that at certain points in the year can be unhealthy for your trading mindset, particularly this month and next. Simply their is not as much flow in the markets so it can be a little more tricky…. if your having a hard time of late give yourself a little bit of leway as Cheltenham is on the not too distant horizon!

5 thoughts on “Behaviour

  1. For the record, Warren Buffet might not be the best example, despite his image. He owns a $4 million home in Laguna Beach, and paid $6.7 million on a private jet in 1989. But he is an astute investor.

  2. Ahhh appologies their Cassini… im going purely off what i had read and seen online, looking forward to reading the book. The point i was trying to make despite being pretty tired at time of writing is those that often find huge success finantially didnt always set out to purely get rich and can be rather humble and grateful if you get my drift.

    Thanks

    Caan

  3. I guess if you’ve 5.9 Billion in the bank a $4M house could be considered frugal 🙂 And the jet is probably more for work than play.

  4. From the outside looking in, it appears that when you up stakes you are actually trying to sabotage everything – and that’s the mindset of a gambler, or any addict. I think you need to go deeper than ‘a traders mindset’ and find out if this behaviour is repeated in other areas of your life and why. A little bit of HONEST, self analysis would be a big help.
    P.S. Don’t get Dad involved!

  5. An interesting comment peter, i am aware i have a very addictive personality… interesting to think possibly my reasons for upping stakes may be deeper than would appear on initial inspection…. when i think about it im like it in all aspects of my life, thanks ill think on that hard….

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