BarroMetrics Views: Coaching and Trading
I was watching a rejuvenated Roger Federer defeat Murray last night. And it struck me that Roger, Andy and Novak all had more thing in common in 2014. They all have hired new coaches. The top tennis players all have coaches, and most of them have had a coach since they began hitting a tennis ball.
Trading is at least as difficult to master as tennis; yet how many budding traders give coaching a passing thought, let alone serious consideration?
Ericson’s Deliberative Practice model presupposes the availability of a coach to provide accountability and feedback. For me, it’s the latter that is most important. The lack of informative feedback means we miss the knowledge that provides the information for improvement. And, this means, we are remain stuck at our present level for our results.
Barriers to engaging a coach include:
- our failure to recognise the need for coach
- the lack of competent coaches in our area
- the cost
The new format I am launching for a trading course in March may provide a solution to the barriers – we’ll just have to see. Certainly the test results have been positive.
In the meantime, provide your own feedback. At the end of each trade, ask questions like:
- do I follow my plan?
- what were the conditions which influenced my behaviour?
- (if I want to repeat behaviour) what are the essential conditions that motivated the behaviour?
- (if I want to avoid the behaviour) what are the essential conditions I can change so as not to repeat the behaviour?
Essentially, you are looking to repeat behaviour that works for you (i.e. helps you maintain your process) and change behaviour that does not work (i.e. is a barrier to your execution of your process). Notice that I said ‘process’ not profits. If you consistently execute your process, then if you aren’t making money, you know you have to change your process. But, if your execution is inconsistent, or if you aren’t even aware of your process, then you don’t even know where to begin to change.
Is your process that needs changing? Or, is it your execution?
Answer, you don’t know because you have not executed consistently………