Discussion in 'Educational Resources' started by Lucias, Feb 7, 2011.

  1. Lucias


    Regards everyone, I will share my insights into factors that I observe that I feel are tangible to success in trading. I hope this is the proper forum. I learned a lot from Dr. Brett's blog, resources, etc. Many of these ideas from from other field. But, I'm not always going to take time to point out the original sources for all of these ideas.

    #1 The ratio of time spent training to time spent trading is one of the greatest determinants to success.


    Take any performance field, there are "fun things" and not so "fun things". The people who do better tend to focus more on the "not so fun" things. In other words, the time you spend ALONE and reviewing what you need to be studying versus time spent on forums, reading crap market entertainment, or placing trades is going to be the MOST relevant to your success.

    I don't know what you need to study or review. You should know it. if you don't then you are in trouble.
  2. Lucias


    #2 One's state of psychology can be viewed as a line that goes from "incapacitated and deeply frustrated" to "perfect flow, abundant energy, and creativity". The more you operate toward the far right then the more success you will have.

    Most of the people who seem to be doing poorly at trading are frustrated. The natural thinking is that they are frustrated because they are doing poorly. But, perhaps it goes the other way too in that frustration leads to poor performance.

    If you aren't "getting it" and don't feel like you run your market then perhaps you need to try something else. If you don't have new ideas every day then perhaps you need to change gears.

    If you are operating to the right of the continuum you need to keep focusing on what you are doing best at. Don't listen to the naysayers! They want you to focus on what they focus on which will only shift you to the left of the continuum.

    Focus on what you are best at and actively work to stay in flow.
  3. Lucias


    #3 Keep your target in front of you. Don't become disoriented.


    Have you ever played a FPS game and the enemy flanks you? What do you feel? You feel disoriented. You've lost your operational sense of perspective. Of course, if you are really good then it become exciting but that's not the goal.

    I will add a caveat which is that when we learn something new there is often a feeling of something unease and that's good.

    However, if we become overwhelmed with new information then we become ineffective. My advise is that prefer to feel disoriented when you train but not when you execute.
  4. Roark


    I don't know if I agree with that. People who are really good at something do it because they find it entertaining or fascinating. It's not work for them to practice because they enjoy the practicing. So they shoot free throws for hours everyday because they like it, while someone else becomes completely bored after a few hundred shots.

    Take skateboarding for example. You have these extreme skateboarders that can do all these insane tricks because they love it. They don't practice going down a stair railing on a board because they need to work on it.

    I thought this was why coaches were created.
  5. Lucias



    Thanks for your input. Let me provide my experience as a programmer, if you ask anyone they will tell you that I've always been a talented programmer.

    When I was a kid, I remember working and working to learn to type. I remember staring at a computer screen without a clue what to do.

    As I developed as a programmer, I became rather competent and capable of doing many things. Yet, other programmers I met were "frozen" in development. I noticed they always tried to work around problems that came up whereas I would not accept a "work around". In this way, I continued to develop my performance beyond basic competence. Even at that, there were things that I didn't work on that ultimately limited my development as a programmer. Most people tend to study what they know because it is most comfortable. That is a mistake.

    There is a degree of truth in what you are saying and that's what I tried to convey about "focusing on strength" and staying in flow. But, I'm saying if you don't know what you need to be working on then that's a problem, and you have to do that work.

    Nobody else is going to do it for you.

    In terms of the coaching concept, I feel that if you've a developed a degree of performance then you should have some ideas of what you need to work on. If you don't then you probably are at more of a novice or beginner stage and that's fine too. At that stage, finding a mentor or just reading books can be productive.

    PS: I'm not referring to you, personally.. obviously thanks

  6. Lucias


    #4 Use psychology to boost your performance. Imagine that an amazing trader sees every opportunity in the market and is watching you trade. This amazing trader sees every opportunity and he's watching your trades to see that you take every opportunity. He's your boss. He's more then that though, he's someone you respect. If you don't take every opportunity then you're going to get fired and if you take bad trades then you'll get docked.


    The best opportunities are the easiest opportunities to see. But, people have hang ups or I don't what it is. They want to point at them and say "look that opportunity!". And they don't take it and they feel bad and they do something stupid. You'll do less stupid stuff you took the opportunity to begin with.

    There is a caveat to this and that is that this mentality will require more risk taking and a more aggressive approach. This is a psychological tool to help me. But, it does require one to perform at their best.
  7. Roark


    Do you think Dr. Brett sold out by going to work for SMB Capital?
  8. Lucias


    He did the work for SMB Capital for free from what I read. He went to work for a hedge fund. And to answer your question, absolutely not. He's a psychologist with a focus on elite performance.

    It would be kinda like asking any professional if they "sold out" by going to work. Does that mean I'm convinced SMB's services are worthwhile? No, not that either. I enjoy reading their blog, though.

    Dr. Brett never offered consulting for a fee to individuals but only to firms. He had a belief that most individuals lacked the resources to trade successfully for a living without some support. I think that is why he promoted firms because of his beliefs about the realistic prospects of small, under-capitalized traders trying to trade for a living.