This manifesto is a continuation of trading ideas presented in part 1
4. Mistakes lead to development
Leave your ego at the door and understand that you’ll be wrong. Mistakes offer the path to progress and ultimate success. Each error provides an chance to learn in the error and to modify one’s approach based on this new info.
Whenever you make a substantial mistake in trading, write down it, either to reinforce the lesson and also to serve as a future reminder. Then change your trading procedure based on this new adventure. In this manner, mistakes can grow to be the essential component for continual improvement for a dealer (or any endeavor for that matter).
Be daring, adopt disagreement
As the founder and trader of the largest hedge fund in the world (Bridgewater), Ray Dalio, uses a civilization supporting independent thinking and invention. Dalio considers there must be considerate debate and non-ego impaired exploration of errors and weaknesses to achieve goals.
It is a procedure which produces discovery.
Collaborate on ideas
One of the things I adored about designing studio has been the capability for cooperation. As soon as an idea first pops into your head it sounds fantastic, but as you begin to go over your idea with others, questions arise that you might not have thought about at first. Thinking through each of these facets contributes to the evolution of a structurally sound idea.
Seek out conflicting viewpoints
The better we understand the resistance, the better we can understand who’s on the other side of our transactions and how they may respond.
The fantastic thing about being a trader is that you can always do a much better job, no matter how effective you’re. Most individuals are busy attempting to cover up their mistakes. As a trader, you are forced to face your mistakes since the numbers don’t lie.
5. Discover what works for YOU
Do as others do NOT
In order to reach greatness, we must get uncomfortable. As a dealer, you can’t be afraid of going against the grain.
Should you do the same as others do, then you can anticipate to be ordinary. Going against the grain is tough. There may be a lot of societal anxieties and questioning from family and friends. To be able to live your life the way YOU want, you need to place yourself in opportunistic situations. Surround yourself with all the people you would like to be like who share exactly the same moral beliefs.
Consider the reverse
Look at things from all angles and consider the opposite action. Oftentimes, a lawyer prepares a case by preparing the opposing arguments first. This lets them know what to expect and have all their bases covered. In trading, consider who’s on the other side of your transactions and if you were that person, how you would react.
Just because everyone is buying gold, does not mean that you should too. The media and the talking heads tend to be on the wrong side of this transaction.
Discover by doing
There’s no substitute for experience. Go out and try some thing.
Isolate yourself from negativity
Surround yourself with those that have a positive influence on your life.
Get uneasy, don’t be afraid to be different!
6. Over Prepare
Follow your fire
Winners not only just work harder than everybody else. Trader Ed Seykota says,
“I believe my success comes from my love of the markets. I am not a casual dealer. It is my life. It is not just a hobby or even just a career option for me. There’s absolutely no question that this is precisely what I am supposed to do with my life.”
The prepared mind attracts luck
No one is perfect in trading, but planning pays off. It’s vital to know over the other players in the sport. You’ve heard the saying that the wealthy get wealthier, well the blessed additionally get luckier. To increase your luck, you must satisfactorily prepare for your day ahead. The dealer who shows up better prepared are the one with the greatest chance of coming out ahead.
Believe as a chess player
Always be thinking 2 steps beforehand. Do not think about what the market’s going to perform; you have absolutely no control over that. Consider what you’re going to do in case it receives there. In particular, you need to spend no time whatsoever considering these rosy scenarios in which the market goes your way, because in those scenarios, there’s nothing more that you do. Focus instead on those things you need least to happen and on what your reply will be.
The worst thing we could do is to quit learning. In order to evolve as a consistently profitable trader you need to always be on the watch for opportunities. I find myself constantly considering the markets and new techniques to implement my ideas.