BarroMetrics Views: GxE for Success? (VII)
We are reviewing the Accountability Cycle for aspiring traders. The final three guidelines form the ‘action phase’. So far, our trader has identified the problem, with reality as a context, he has taken responsibility for the problem, and has devised a possible solution.
Now, he has to test the solution: ultimately, he has to act, review the outcome obtained, adjust his process to deliver the desired outcome, and act again. This process of ‘act-outcome-adjust process-act’ continues until the desired outcome is attained.
If we examine the route many (most?) novices take in an endeavour to attain success, we’ll find that the they fail to follow the accountability cycle.
Most start with the idea that trading is an easy way to riches. As one aspiring trader said to me: “I want to get rich with no effort, no starting money and little effort” (???). Hardly a realistic attitude. Many fail to obtain the most basic education, they flit from ‘freebie to freebie’, somehow believing that this will be all they need to learn to attain their dreams. These fail to ‘seek reality’
Some do go from seminar to seminar, book to book, looking for the one system, the one magic indicator that will produce the results they seek. I take the view such a system probably does not exits; and if it exists, will not be shared.
Moreover, if such a system does exist, it will exist, at best, for a short time.
At its base, trading is a function of the consistent execution of trading and risk management rules, rather than the result of some ‘holy grail’. By seeking the Holy Grail, these traders fail to ‘acknowledge reality’.
A few do obtain an education; but, they then fail to translate that education into a robust trading method, and a set of risk management rules. In this, they ‘fail to own the problem and find a solution’.
In my experience those that successfully navigate past the ‘find solution’ phase, usually go on to succeed. They apply the three guidelines ‘act-review-adjust-act’ to attain their vision of success. But, a minority in this group, find that they know what to do, but fail to do what they know. What causes this?
We’ll look at this tomorrow.