BarroMetrics Views: Competition Conclusion
The results of the competition are posted at the conclusion of this blog. Congratulations to the three winners!
But, the competition was more than helping Paul. Its main objective was to help you effect a more effective review process.
Recently, a well-known institution for whom I do some consulting conducted a survey to determine what factors contributed to consistent losing trades. It provided food for thought in that it revealed some lesser known factors leading to losses.
One of the less-known reasons was an ineffective review process.
An effective review process has:
- A well-defined goal.
- Identifies the essential steps to attain the goal.
- Identifies the elements that contribute to success, and identifies what elements are within our control and which are not.
- Creates a plan to attain the goal.
- Executes the plan.
- Reviews the results of the execution.
- Changes actions that fail to lead to the goal seeks to improve actions that advance our goal.
One of the key findings of the survey was successful traders, in their review process, focus on describing the behaviour, They may make a ‘judgment’ entry, but that is always supported by a behavioural comment. For example, Wolfie said:
”Another lazy habit of his perhaps.’
This is a judgment.
According to modern psychological theory, judgments are not very useful. They may make us experience negative feelings but do little to point the way to effective change. Much better would be to identify specific behaviour. Again taking a comment from Wolfie as an example:
‘Although Paul put in extra efforts to wake up earlier hoping to get a better entry price, he did not follow through subsequently. His habit of waking up late and assumption of the market will “wait for him” caused him to lose the opportunity.”
Tomorrow, I’ll use the ideas above to critique Paul’s case.
Winners: I was looking for two main comments.
- What behaviours (not judgments) contributed to Paul’s lack of success; and
- Whether these were or were not in his control.
Quite a few mentioned (1); one mentioned (2). I have to say I had a difficult choice to select only three. In the end, I chose:
- Manish and
The email with the prize download link will be sent out once I complete this blog.
Thank you all for participating!