I trust you all had a great Xmas!
Over the next few blogs, I’ll be considering the routines and habits we need for trading/investing success. In this post, I’ll be examining the pre-conditions that are necessary.
Routines and habits are actions. There are 5 pre-conditions to effective action:
- The quality of our preparation and planning
- The will to execute our plan
- Our willingness to act beyond our comfort zone
- The effectiveness of the review of our results: we seek to improve the results that lead to our goals; and we seek to change or replace the actions whose consequences lead away from our goals.
But effective action is only one half of the power equation. Actions are the direct result of the decisions we make. Our decisions are dependent on:
- Our internal landscape: our experience, intelligence, attitudes, beliefs, and values.
- Possessing certain values that are critical: honesty, integrity and accountability.
- Our willingness to look behind our closed doors. We all have areas of our past that we’d rather not examine. But here’s the conundrum, to the extent that they remain hidden from our conscious minds will be the extent to which they control actions, usually with adverse consequences. So by having the courage and fortitude to endure the emotional pain that comes from such an exploration, we’ll achieve a self-awareness that leads to more effective action.
Armed with the pre-conditions, we’ll examine routines and habits from the 3 perspectives: Intellectual, Emotional/Psychological and Physical.
First in this series begins tomorrow when I look at one aspect in the Intellectual camp: the Business Plan