This is a longer post so bear with me. But I've got to share it with you because I think it can really make a positive difference in the way we think about trading. It's from a student of mine, Brett Armstrong, who has been progressively doing better and better, planning more regularly, and having consistent success. Here's what he writes:
July 7 was my birthday, in typical fashion I had made prior arrangements with my usual foursome for a round of golf. I had joked with my wife the night before that with the numbers aligned 07/07/07, we really should have been headed to Vegas. I figured that if there was ever a day to try my luck it would be on my birthday with lucky number 7 working in my favor, that notion soon dissipated as I reminded myself that I’m an investor not a gambler and would rather opt to try my luck on the golf course.With that thought in mind we met at Talon’s Cove where I shot the lowest score of my life (76, four strokes over par for 18 holes). 6 strokes better than my previous personal best, immediately following the round everyone began making comments about the numbers being aligned. I too fell victim to the superstition, wondering if I’d ever shoot that low again.
The more I thought about the round I began to realize that my success on the golf course that day was much like my recent successes trading. Here are a few of my conclusions.
1- I’ve spent the time now the knowledge is mine (hey it rhymes)- After years studying in each discipline, the knowledge is now ready for practical application. In both cases I have found myself acting more instinctually rather than mechanically… I believe a mechanical approach gets in the way of true success and fluid performance.
2- There is no perfect swing/system- I had to find what worked for me, there is no one perfect fit for every golfer/trader. I had to find a style that I was comfortable with and that would suit my basic personality.
3- Quit relying on luck… If you plan your trades/shots thinking first no luck needed, even on 07/07/07.
4- If it’s to be it’s up to me- the realization that any success or failure is entirely my own. I can place no blame on a trading group, foursome or outside circumstances. Not every swing will be perfect, but it is mine none the less as is my response.
5- The adage that the secret to golf is to never hit two bad shots in a row applies equally to trading. When you encounter setbacks, it does no good to seek revenge, to be a hero and try to redeem yourself… take your medicine learn from the situation and move on.
6- Success begets confidence and added success- on the last hole of the day I found myself buried in a sand trap. It was a situation that under other circumstances could have been devastating to my game, that day however I knew I had the ability to finish strong. I found my way our of the sand and finished with a par, I have found this true of trading so long as I temper my confidence with humility… I find myself making better trades and taking fewer losses. I
7-Swing easy… rather than looking for massive drives or huge gains, my focus has recently been on smaller more controlled profits of 30-50 pips. I have seen far too many beginner golfers and traders alike step up to the box swinging with all there might only to find failure and discouragement. In many cases it will take years before they realize that success is not the result of swinging harder, but being more consistent in approach.
I know I’m not sharing anything new, but it is interesting how life lessons can be found in some many parallels’ if we just take the time to look.
One of the best emails I've received. Ever. From someone who does his testing, maintains contact with me on a regular basis, and follows the principles of his trading strategy consistently and with discipline. You will hear more about Brett in the future. He is on the road to trading for a living.
