Forgetting what we need to do or what we have already done happens all the time and maintaining a journal to keep a record of transactions will definitely go a long way in helping us remember our actions and in trading better in the long run.
Even though Rolf Dobelli an author who wrote a good book on thinking clearly says that most people over-rate their skills and abilities, I have also found it to be a fact that most people also under delivery when it comes to action. It is almost like we are quite lethargic to act on even what we know! Those that are curious do learn a lot of things but when it comes to implementation they are unable to do even a fraction of what they know!
What can be the reason for this? Is human nature one of procrastination? Is laziness inbred in all of us? If you asks people those two questions most will deny it stoutly- proving once again, that they will overestimate their capabilities!! But moving on to something else, is it possible that we lack faith in ourselves, in our own ability to do even things that we know? Are we, as Warren Buffet put it once, delivering only 100 HP when each of us capable of producing 400 HP of power and effort?
We are all creatures of habits and these habits form thru the years of our upbringing. Many of them are formed by our environment, our culture, our exposure, our company etc. But many of them are also picked up unconsciously. Then they stay with us and get hardened. To an extent where they now merge into our personalities and it doesn’t seem like we are responding out of habit but we think its happening because it is who we believe we are!
To trade better and to continue to do better, one of the best ways is to create a record of what we do. A trading journal is the best item for this. Entering our thoughts and processes into a journal creates a record that we cannot gloss over, that we cannot conveniently overlook or bypass. If we then make it a point to review it periodically, our short comings will become visible to us and our tendency to overestimate our capabilities will start to recede. After my experiences with trading and teaching trading psychology to people I have designed a trading journal for the benefit of those who would want to make this effort. Periodic review of this journal will help us work on our weakness and concentrate on our strength. After all, one of the formulas for success is to just repeat what works more often. A journal of your daily chores in trading will help you identify what you are good at. That will enable you to do more of it. With that you will be able to deliver your entire potential of internal horse power that you possess.
Notional Vs Real Wealth
Oftentimes we read headlines in the papers that ‘X-thousand crores wealth wiped out’, if reference to some market fall or the other. Seldom do we find the opposite- that so many thousand crores of wealth has been added! Why is that, I wonder? Maybe its because newspapers largely like to spread bad news I suppose! But thats not the point. What I am referring to is the fact that almost no one really takes those alarming headlines seriously. What is the reason? Isnt something that says we lost x-thousand crores of our wealth something to be taken seriously?
Procrastination- the habit of losers
how to develop habits that make us successful.
Oddities Of The Present
Markets definitely are full of oddities! The good part is the ones who understand them and are willing to study deep, practice hard and conduct patience (like mentioned in case of warren Buffet) will reap the benefits of the same as they are the ones who will convert threats into opportunities! The ratio of success in the markets till date is so skewed (90Winners:10Loosers) only because these oddities exist and they are a lot many of them who do not understand these and are willing to provide for their counter part who do! On this note, Lets commit to our selves to put in more than we are doing already to come in the bracket of the 10%
