1. Would You Like A Promotion?
[Stocks Technical Analysis] TradingReview360.com: We aim to bring you the best articles
from around the globe. The post below is useful for those interested in Technical Analysis.
Read on to learn more:
Think of the new year as a promotion for you. The exercise is simple in its execution and
somewhat more challenging in its implementation. You’ve been promoted and are moving
upstairs to Suite #2013 which has an improved view and is much more spacious
for all your investment activities. What
makes this move unique and unlike any other is that the relocation requires you
to review your 2012 trading journal and make a careful inventory of all your
experiences and investing behaviors from last year.
To quote Eric Zorn, you should think of it as “a cleansing ritual of self-assessment and
repentance that demands
personal honesty and ultimately reinforces humility.” No one enjoys revisiting poor trades and
bad
executions, but remember that these are the building blocks of your growth as
an investor.
Once this is done, you decide which achievements and accomplishments
you want to bring with you into the next year. When you’ve completed this list, you then
review it and check off only those deeds and behaviors that you want to move
with you into the new Suite #2013. All
the others that you’ve deemed to be unnecessary or unworthy can then be
jettisoned from your luggage.
So into the new year you fly – a new investor! What remains with you is a compilation of
only the “good stuff”, a sort of greatest hits from your 2012 trading year. This transition clearly
involves two
objectives: what you consciously leave
behind and what you purposefully take with you.
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2. Your move into this new metaphoric Suite #2013 must be executed with
deliberateness and finality. There is no
going back to your old ways.
Personally, having done this exercise for years, I have found that a
major benefit of this approach is that it forces me to address those instances
when my analyses were correct but my execution was off (and vice-versa). Even then, it’s
necessary to unbundle my
execution and look at both halves — the
technical execution and the emotional execution.
It should be crystal clear why your trading journal is such a
powerful ally. Your journal is where you
record your past responses, feelings and thoughts – as honestly as your can
since these underlie your trading behaviors.
This emotional awareness allows you to dissect the trading process into
smaller tasks and helps you track non-productive deviations. This feedback loop is the secret
sauce!
In his book The Successful Investor, William
O’Neil wrote: “I know how bad habits are formed and how hard it is to break
them. But break them you must, so you
can develop new habits based on how the market actually works.” The intention is that you
become a modernized
version of the investor you know you can become if you would only leave behind
those tools and behaviors that will not contribute to this new version of
yourself. You only pack up and retain
those elements that you know are the building blocks of this improved investor
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3. self. Think of it as your personal 4R
Program.
1. Reshaping
2. Realignment
3. Reprogramming
4. Refinement
You leave behind your old self – for it was imperfect – and as you
let it go, you begin the transformation into the new self. T. S.
Eliot’s verse seems so appropriate: “For
last year’s words belong to last year’s language, and next year’s words await
another voice.” As an investor, embrace
the challenge and possibilities of the coming 12 months. Next December, you’ll know the effort
was
well worth it.
Trade well; trade
with discipline!
–
Gatis Roze
Check out the original source here.
What Is Technical Analysis?
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4. Technical Analysis is the forecasting of future monetary rate motions based on an examination
of previous rate movements. Rather, technical analysis can help investors anticipate just what is
likely to occur to rates over time.
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