Cause and Effect

Discussion in 'Psychology' started by Tonkadad, Jan 16, 2006.

  1. I was going over some material I had from Robert Miner that I got over the internet:

    Trading is no different than any other business. Success will never be achieved unless the business owner deals firmly with the reality of the business operation today. While it is necessary to envision and plan for the future direction of a business, the envisioned future will only be obtained by actively taking care of present circumstances in a manner that will ensure the vision of the future.

    We often lose track of the universal truth that the future in nothing more than the consequences of the present. This is the immutable Law of Cause and Effect that is inescapable.

    I read this after spending about 5 hours Friday night on the net deciding upon what components I would be getting for my next computer.

    I have noticed there seems to be a disconnect with me regarding what I want my future to look like and doing the things to get me there.

    In my few and far between moments of clarity on what I need to do to create my envisioned future, it all seems so "doable" but when it comes time to do the "doing" is where I come up short.

    What does this have to do with the 5 hours Friday night computer thing? I had planned to do a couple of market playbacks. Didn't quite make it.

    Anyways I will leave you with this:
    Todays decisions (and actions) result in tomorrow's consequences.

    Needless to say this applies to all aspects of life.

    Bruce
     
  2. You ever wonder about how the guy telling you trading is a business no different than any other business is himself running a business? Maybe you should wonder what he's SELLING. And that's the whole point.

    My parents have run businesses, my sister runs a business, I have advised clients in the past about their businesses. Trading doesn't resemble anything like the businesses I've seen up close. Things that are similar are the need for record keeping and wanting to make money, but that's about it. From what I see, the closer analogy to traders are serious gamers. Of course that's just my opinion of comparing what I do with people I know, so take it for what it's worth. But rest assured I'm not selling anything.

    Regarding all that stuff about "universal truth", "immutable law", "inescapable" fact, etc., etc., well that sounds like he's selling a bunch of bullshit but I admit I'm not the serious type. If I caught myself talking like that I'd probably conclude it was time for me to get laid. In my younger days I'd get drunk too but I'm more responsible now.

    And what you said about today's decisions (and actions) resulting in tomorrow's consequences, well at least in trading it isn't like that at all. Every day is brand new. You start all over again. Actually every decision-action pair in the market is a fresh start, so to speak.

    Anyway, all this is just bullshitting on a Sunday night before a holiday.
     
  3. Still a GREAT post though.

    "Anyway, all this is just bullshitting on a Sunday night before a holiday."

    :)
     
  4. Same as any business, if you are going to buy something ask; is it revenue generating or time freeing to justify that cost. Money freed up from cost control is like Manna from heave compared to money obtained fighting competitors/other traders.

    Avoid false economy. People trading size don't swap Esignal for BBG or CQG and 56K for T1 lines, or a free java front end instead of TT. Alternatively, if you trade samll and swing trade, don't pay for the abovbe as your max loss may be less than 1 month of that lot. Cheaper to take the hit.
     
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  6. Im no big fan of the psychologists but I do like some of the things Steenbarger has said. To wit:

    Many traders experience anxiety and self-doubt because, at a fundamental level, they do not know what they are doing. They have never backtested their ideas/systems and thus don't really know how those perform in real time (expectable drawdowns, etc). Traders who seek psychological help when they lack a tested methodology remind me of couples who seek help with "communications" when, in fact, they are wholly incompatible and have little to communicate about. The psych help is used as a way of avoiding a more fundamental problem.

    He also did a study of traders and concluded that many of them were not very nice people so you'll forgive my attitude.

    :)
     
  7. Banjo

    Banjo

    It is a predators game, you don't have to be a predator to play but you do have to understand predators/ predatorial dynamics.
     
  8. Banjo

    Banjo

    " have noticed there seems to be a disconnect with me regarding what I want my future to look like and doing the things to get me there.

    In my few and far between moments of clarity on what I need to do to create my envisioned future, it all seems so "doable" but when it comes time to do the "doing" is where I come up short"

    Then you are comfortable where you are or it would really annoy you to be there. Everybody knows, or can easily discover, how to lose weight or get in shape but few do it so it must not really be that important to them. Maybe they are just afraid of arriving at the accomplishment and not knowing where to go next, the now what question. Maybe they are afraid they're not capable so why try, everybody has their own cross to bear.

    It is very easy to accomplish one action and then the next untill the series is complete, people muddle it up so they don't have to do it. Intent= discipline. The real question is why do they muddle it up, what is going on in their emotional package that allows them to obfusecate the clarity of their intellectual package.
     
  9. I think for some people who struggle, success is a "rarity" that can become a very self-conscious thing which in turn sabatages itself -- ie, "I can't believe I'm doing so well". The people who are able to operate continually at an extraordinary level do so partly because they pay very little conscious attention to the outstanding merits of their actions, they are just "going about their business" as usual. The less self-conscious we are about the goal, the more our minds are free to concentrate on and excel in the process, whether it be trading, sports, public speaking etc.