The Talent Code Revisted

BarroMetrics Views: The Talent Code Revisted

In ‘A Quiet Revolution in Learning Theory‘, I introduced Myelin and Daniel Coyle’s learning model, ‘Deep Practice’.

In this blog, I’ll spell out the ramification of these ideas.

Currently, a trader’s education comprises of:

  • One to four day’s seminars with perhaps a period of support after the seminar.
  • Three to Six week webinars with a period of hand holding after the webinar.

The hand holding takes the form of answering questions and analysis by the instructor. The student rarely sends in his input.

  • Mentoring courses lasting from three months to two years. For obvious reason, these tend to be at the top of the price range.

The education is akin to the air pilot training of the 1930s. Coyle recounts that the most able of the army’s pilots were dying in crashes. The education pilots received consisted of:

  1. The instructor taking up a prospective student in a plane. The pilot would then execute a series of loops and rolls. If the student did not get sick, he was admitted to air school.
  2. He then received some blackboard instruction and ground school. This was followed by
  3. Solo flying.

(Do you see the similarities with the trading education received since time immemorial? We go to seminar; we open an account; we start trading. Is it any wonder so many fail?)

The turning point for air safety came when Edwin Link built a flight simulator. Its use brought about the fantastic drop in fatalities and is responsible for today’s great air safety record The Coyle model is the trader’s Link Simulator.

If we adopt the Coyle model, trader education will split into two parts:

  1. The theory aspect and
  2. A ‘simulator’ portion where the student learns to apply the theory.

Used effectively, the Coyle model will prepare the newbie trader for trading in much the same way as the simulator provided the training for novice pilots. My gut feel is we’ll see similar success rates.

8 thoughts on “The Talent Code Revisted”

  1. Hi Ray-san
    I agree that a simulator stage would be invaluable. Supervised live trading is not quite the same thing. I think it is due to the consequence of a mistake is foremost in the mind of the student. This subtly changes the learning mind. Trying to do the right thing, is different from trying to ‘not do the wrong thing’.
    Within the flight training simulator enviroment, the usual method of learning is based upon lessons.
    Each is studied before session. IE aim and objective for that session. Video, blackboards and written briefings are used at this stage to ‘plant’ visual picture of what the process involves, and what a correct outcome of ones actions would look like.
    (unfavourable outcomes are also briefed.)

    During the sim session, a common method of teaching is ‘the adult learning concept’ of ‘demonstrate, direct and monitor’.
    The instructor first would ‘demonstrate’ the procedure, pointing out key aspects.
    Next the student would be ‘directed’ through the task. Also being pointed out the key aspects.
    Lastly, the student is allowed to do the task whilst being monitored by the instructor. This step is important, in that mistakes must be allowed to happen. (difficult for the instructor to keep his mouth shut at this point) After the task has been completed, the student is debriefed.
    Unsupervised simulator training would be most likely more harm than good.

  2. Hi Ray,

    As a recent graduate of your HOS (Habit of Success) program, I fully embrace what you shared on Coyle’s learning model and how it can accelerate our mastery using ‘Deep Practice’.

    These ideas had motivated me to chunk down the course materials, slow down to review and to practice by producing diagrams, summary document and getting valuable feedback from you.

    As I was hungry for more, I started reading your book “The Nature of Trends”. Although I skipped the section on BarroSwing & patterns recognition, I still find many sections useful; e.g. entry & trade management, trading psychology etc.

    Here is one paragraph that I like A Lot!!!
    ” ….views on nature of statistics and probability theory ….I don’t follow textbook ideas”. That’s is true and it’s what makes your materials interesting & useful to traders.

    A big Thank You for being my teacher!

    Peter Ow.

  3. Hi Stuart

    Thanks for the run down. Yes the Coyle model has taken much from your industry.

    Unlike flying though, in trading, a student can create his own plan. And, provided he has the other factors bedded down, and as long as the plan has an edge, he will be a long-term winner.

    This is hot to say the self-route is not harder than being taught; but it is to say, that the self-route is possible in trading.

  4. Sir,

    Tks for providing the analogy.
    In training it is stimulated training that is
    the key to success.

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