Journaling and Trading Success II

BarroMetrics Views: Journaling and Trading Success II

Yesterday I introduced the idea that much of our action is governed by our ‘default futures’ which are in turn  created by our aversions and attachments.

In this blog, I examine aversions and attachments and explore how journaling helps identify.

My view of human nature  says our actions are mostly influenced by three main drivers:

  • our need for safety
  • our need for control
  • our need for approval and affection.

The drivers are reflected in the four main aversions and attachments:

  1. Pain and pleasure
  2. Shame and fame
  3. Loss and gain and
  4. Blame and praise

Remember that our ‘default futures’ are internalised, unconscious and automatic habitual responses which have served us well in the past; but which may not serve us now in all circumstances. The first step then is just to become aware of the habits.

Keeping a journal delivers this necessary outcome. By observing (just observing and nothing more), the divergence between a stated outcome and the results our behaviour brings, we raise our awareness from unconscious awareness to conscious awareness.

Once we become aware. we can start taking steps to correct the behaviour. The journal now serves as ‘gap-learning’ device. We try different ways to interrupt the pattern and the journal tracks the results of each attempt.  In this way, we can continually narrow the gap between our outcome and results of our actions until we attain the outcome we want.

Tomorrow, Wednesday, Sept 8, I’ll consider the formats I use in my journaling.

7 thoughts on “Journaling and Trading Success II”

  1. Great post on journalling Ray. Especially the “gap-learning device” point.

    Having a feedback loop is the key I feel. As they say “what isn’t measured can’t be managed”.

    Really enjoying the journal posts – as it’s something I find very hard to do also. Cheers. Paul.

  2. Hi Ray, Many years ago,driving thru Sydney I saw some grafiti on a wall which seemed quite apt to trading, “Paranoia is total awareness.” I thought this quite funny but in a strange way ,quite true when exiting a position. cheers Baz

  3. Hi Ray,

    I struggle with journaling my fx trades. But I am not giving it up. Look forward to seeing your format. I am always on the lookout for simple yet effective format.


  4. Hi Daisy

    if you struggling with your with journaling, best you adopt the 3, 1, 0 format. Drop me a line and I’ll run through it in a post.

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