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.He, therefore, gets nervous when he thinks about his Rungs on the Ladder of Commitmentavoidance patterns and his unwillingness to commit.Obviously, com-mitment is tougher to do than simply correcting bad habits and letting To be a committed trader, you must remember past trades, good andbad, and be careful to differentiate between what happened and whatthe numbers grow bigger.Trading by objective does not mean playing big simply to play big.you believe happened.You must mark your day's results to the marketRather, the trading objective enables the trader to stretch, to decide so that you can see what you did and differentiate that from what youfelt.What's the point? In the future you want to be governed by theconsciously on a course of action, rather than passively wait for marketfacts and their relationship to what you did.In this way, each day youtrends to govern decisions.106 TRADI NG TO WI N100 Percent Commitment107can correct your experiences so that your memories are clear, and youmove forward with sharper perceptions about the market.Thirteen to Increase CommitmentIn essence, commitment requires three major stages:1.Use all your talents.The first is a willingness to dig in and put yourself at risk.It involves2.Cut out distractions.learning to function with uncertainty, without knowing how events will3.Eliminate the tendency to trade more instruments or sectorsunfold, even though this is not the ordinary way in which we function.than you can follow.The second stage is to recognize and then put aside all the negative4.Choose good fundamental names over poor names.thoughts about the consequences of raising your sights or of stretching5.Stop hesitating and holding back.the envelope.To do this you must learn to overcome the instinct for6.Be willing to ask for help when you are stymied.self-preservation, which favors the status quo.There's a tendency7.Identify your usual constraints and beliefs, and go beyondamong traders is to play it too safe.them.Billy is a case in point.Explaining one trade involving Eli Lilly and8.Learn to go beyond your usual style.If you are an eventCompany, Billy says, "Today I was long Lilly.I made one point ontrader and need an earnings report or some catalytic newstwenty-five thousand shares.Kept twenty-five thousand shares.Then itevent to trade, increase your communications.Make more re-went up another two points.I made a decision not to sell it, and it wentsearch calls when there are changes.Call other analysts whodown two points without doing anything.I had figured on a big profit.deal with your sectors.In retrospect, it was a mistake not to sell it.Even if I bought it back, I9.Find out more details about the sequence of events leading towould have made fifty thousand dollars."decreased stock prices.Billy's trading reflects a reluctance to be flat (even) in a situation,10.Get to work earlier.and a concern about not making a mistake.Billy didn't buy enough ini-11.Write down the most important tilings.tially, and kept a position so as not to miss the high.When you trade12.Write down your day's target.this way, you stay in a neutral zone.You are not reacting fast enough.13.Develop a checklist of tough questions to ask regardingBilly's negative thoughts about the past hurt the ability to profit in themoves to make on particular trades, especially when you arepresent.stopped or don't know what to do next.If you are at all like Billy, you may experience an erosion of goalsand a resurgence of an internal pressure "not to lose" in the face of frus-tration or failure.When your perceptions of the market are distorted byyour emotional reactivity and your decision making is compromised, it'srelying on others who you think have power.In fact, to become inde-a good idea to declare a "breakdown" and acknowledge the effect ofpendent and self-actualizing you need to develop your own power andyour emotions.be circumspect about how much power you endow in others.Let themHow do you overcome such inhibitions? By bringing into play thecontribute what they can, but don't rely on them to make you whole orthird stage of commitment, which is to increase the complexity of theto realize your vision.Ultimately, it is your ability and your effort thattask and the size of the challenge that you make.This forces you toare critical to your success.bring more of yourself into your work, to pursue your own trading vi-Sometimes traders give up their self-reliance as they get bigger.Thesion consciously and actively.The positive value of raising the stakes willtask for them is to stop tuning into ambiguous signals from the bossbe reflected not only in optimizing your trading results but in trans-and concentrate on trading their own style.They may need to get an as-forming the rest of your life.sistant to clean up their bad trades, so they can go to the next thoughtFor instance, a belief in your own insufficiency may lead you to startwithout spending time on getting out of losing trades.If you want an100 Percent Commitment108 TRAD I NG TO WI N 109assistant, go get one.Bite the bullet.Stop second-guessing yourself by moded habits.Focusing on the present in the face of failure and uncer-tainty is an inherent part of living in the gap.waiting for approval.The key question is to decide what your game is, how to get better When you act in terms of your commitment, you step to the edgeat it, and how to take advantage of the capital available.Don't keep ex- of the abyss, all the while devising a strategy in line with your vision.Old self-doubts and distractions compete with that vision.pecting the boss or someone else to do it for you.Once you become independent, your boss is certain to notice you For example, Austin realized that trading in futures was a distrac-are moving forward.But you need to make those moves on your own.tion for him.They gave him a small sense of winning, but in the mean-There will always be more capital for you to use.time he was not trading the stocks in which he had major positions.Commitment, therefore, is not so much hard work as it is promis- Once he stopped trading futures, he doubled his profits on his basket ofing yourself to realize an uncertain goal and then doing what it takes to stocks.reach that goal which often means giving up old habits and beliefs.It The gap between where you are and where you want to be can be aalso means a willingness to allow yourself to be uncomfortable when source of creation or a source of problems, depending on how you dealyou are in unknown territory.It may help to keep a diary.Record your with it.You can deny the gap, or you can recognize it as an opportunityfeelings so as to see the relationship between your emotional responses for growth.You can respond to it habitually, or you can use it as aand your performance.You'll neutralize anxiety by writing about your source of mastery.discomfort, facing it, and discovering how transient it is.Keep asking The power of living in the gap comes from your willingness to admityourself: What else can I do to raise my level of commitment to 100 to your problems.Once you acknowledge them, you can begin to en-percent? large your trading successfully
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