BarroMetrics Views: The Power of the Unconscious
As the curtain draws down on the BarroMetrics Blog, I wondered what I could leave you with that you would find worthwhile.
One fact stands out: somewhere between 75% to 92% of retail traders lose money. And despite the modern advances in technology, learning theory and psychology, that number has not changed. Those were the numbers when I started trading in the 60s, and little has changed.
So, what needs to happen to make a difference?
A spate of books I recently completed suggest that the remedy lies in two areas:
- our commitment to self-awareness of our belief systems and
- to the commitment to do whatever it takes to succeed i.e. to have the necessary grit. Surprisingly, it also includes the ability to quit. If you aren’t willing to do what is needed, you’re better off quitting.
The success formula is well known:
- Gather what is known about successful trading.
- Identify our current reality and our end game.
- Identify what is missing and what needs to be changed.
- Plan the actions to make the changes.
- Execute our plan.
- Review the actions – throw out what is not working and keep what is.
- Loop 3 to 6 until we attain our goal.
The process includes being aware of the beliefs that serve us and those that don’t. Once we’ve identified them, we accept the existence of our limiting beliefs, then reframe or substitute them for empowering ones.
The process is not an easy one. It takes self-honesty, work and dedication. Most traders would rather lose money than do what is necessary to change – hence the abysmal success stats for retail traders.
My hope: you are among the winning 8% to 25% winners, if not now, then tomorrow. All the best and thank you for reading my blog.
I have attached the books I referred to in paragraph 4. I’d recommend reading Insight.