jimmy1jag said:
For me the most important part was "knowing myself" which can be easily glossed over, because it's not the techie bit (if techie bits turn you on that is).
I posted the text below on a different thread but thought someone might be interested to have look at the process I personally went through:
This seems like a reasonable place to post something about knowing yourself.- a bit off topic (US day trading) I know but relevant here. In addition to all the advice posted above, you need to know yourself. If you don't know yourself, then you can't take steps to improve. To get to know and understand myself I used and adapted an exercise when I was defining my trading plan last year. I originally did this exercise a while back in completely different circumstances. I dug it out and adapted it for trding purposes.
Below are the questions I asked myself (which I then answered in written form). This takes a while to complete, but if you've never worked on yourself before is well worth the effort.
Once you've completed the self inventory, you then need to identify you key weaknesses so that you can work on them in a structured manner. I am not a shrink or a psychotherapist; I take things which I find help me. What I did helped me and it may help you too, hence my reason for posting. (For obvious reasons I have deleted my own answers as they are highly personal). You can only do this if you can admit that you've got some problems in your trading. This helps you to identify where they lie. If, however, you don't have any psychological issues, then you don't need to bother with all this.
False Pride
Being so thick skinned that we have trouble admitting any human weakness at all. Another word for this is grandiosity. How would you describe yourself in this respect?
Humility
Humility means accepting ourselves, strengths as well as weaknesses; not being defensive. How capable are you of doing this- both in general and in relation to your trading?
Perfectionism
Setting unrealistic standards for ourselves. This can lead to impatience which can lead to frustration and ultimately (costly) mistakes. Are you a perfectionist? Do you set unachievable targets for yourself? How does perfectionism affect your trading?
Admitting Mistakes
Can you think of instances of being in the wrong and admitting it? Is it OK to make mistakes?
Impatience
When impatience gets the better of us, not only do we want what we want, but we want it now. This leads to us not trading our plan and subsequent losses. This can turn into a vicious circle as we become even more impatient as a result of the previous failure. How do you see yourself in this respect?
Resentment
Resentful people hang on to angry feelings. Resentment is a good excuse for irresponsible behaviour. Do you honestly feel that this resentment is justified? Do you feel resentment towards the markets for example? Or towards other traders because they do better than you do?
Understanding
Are you able to accept the things that you cannot change? Does this form part of the way you trade? This is also very much linked to “hope”. How do you trade when faced with the inevitable? Do you carry on regardless “because you know better”?
Being Honest
Are you able to be open and honest with yourself? Does this bring a sense of relief and a kind of calm? Or if not, why not?
Dishonest Thinking
When you are dishonest with yourself, you lose contact with reality. This results in believing that which you want to believe. What effect has this had on you and your trading?
Putting Things Off
Often we put things off until it becomes critical that we do something, and until everything is just right. This can lead to impatience and irresponsibility. What sorts of tasks have you put off in the past/ still put off? What effect has this had on your trading? If you had done these things how would things be different now?
Guilt
Sometimes we hang on to bad feelings about ourselves in the same way as we hold onto resentments about other people. This again can become a vicious circle and can affect our trading.
Fear
Sometimes we are afraid of specific things, afraid that a plan won’t succeed, afraid that we’re going to fail, and of the results that actions we have taken might have, for example, on our account. Describe the fears you have right now/ when you trade, the fears that destroy your peace of mind.
Acceptance and Greed
As acceptance of ourselves grows, so does our acceptance of the world around us. We don’t have to be fearful and defensive because if you’re doing what you’re supposed to be doing, there’s not much to worry about. You can only take what the market offers you. Are you able to let go when things don’t go according to your plan? Or when things go right for a while and then start to go against the way you planned? Describe how you feel in such situations.
Taking Things for Granted
Many of us tend to take things for granted when they are going well. We sometimes forget the effort, action and discipline which finally straightened things out for ourselves. Complacency and boredom are real dangers. Can you recall instances when complacency or boredom caused you to trade irresponsibly? To slip back into trading without your plan?
Being Grateful
How do you feel about how you are now? Do you feel gratitude towards those who helped you on your way? Can you see how a feeling of gratitude can help you in a positive way? And help you avoid the pitfalls of complacency and boredom?
The above questions are just a guide. There well may be others which aren't included here, but are just as relevant. Don't be restricted by the above.
Once you've answered these questions, if you can, go through them with someone you know, ideally your mentor (if you're lucky enough to have one) by reading them out aloud. Read through your original answers every now and again and see if things have changed.
I hope this is of use to someone.
