Janice Dorn, MD, PhD
Neuropsychological Trading Coach
Janice Dorn, M.D., Ph.D., has been a full-time futures trader since 1994. Doctor Janice holds an M.D. in psychiatry and is board-certified by the American Board of Psychiatry and Neurology in general psychiatry and addiction psychiatry. She holds a Ph.D. in brain anatomy. A graduate of Coach University, she is a pioneer market psychiatrist and financial neurobehaviorist. Doctor Janice has written over 500 articles on the financial markets and coached over 600 traders worldwide. She is the Global Risk Strategist for Ingenieux Wealth Management Group, Sydney, Australia.
|
It's no disgrace to start all over. It is usually an opportunity…George Matthew Adams
In a previous Trading Wisdom, you will find the information that set the stage for the spectacular performance of U.S. swimmer Michael Phelps in the 2008 Olympic Games. He did everything according to his plan, and has at the time of this writing accomplished everything he set out to do in Beijing. The six instructions at the end of that Trading Wisdom are the fundamentals of becoming successful at anything you put your mind to, including trading.
One thing that we learn from competitive sports is that there are losers and winners. It is the same in trading. In the futures markets, for example, there is what is called a zero-sum game. This means that for every dollar you make, someone else loses that dollar.
Olympic athletes stand to win both fame and fortune, as their names and faces become known across the world. We focus on the winners because they stand on the podium and collect medals. Yet, underneath the surface, and often more poignant and touching, are those who failed. This failure was seen on Tuesday during the women's gymnastic championships. Team U.S.A. was doing very well against Team China until it came to the balance beam. The young gymnast had planned a special entry to the balance beam, and this was touted as being so special that no one else did it. As is the case with these sporting events, the cameras come in very close to the faces of the athletes, and it was clear that this young woman was set and determined to do what she was expected to do -- a fabulous mount onto the balance beam followed by a great performance for Team U.S.A.
Unfortunately, she slipped on the mount and jumped off the beam. It was devastating to watch the expression on her face and to see her subsequent performance. She missed the mount and it all went downhill from there. She became rattled and tried harder to win. In doing so, she made one mistake after another. When she was finished, not even her team could console her. She sulked, hung her head and even refused to let one of her teammates hug her. This was an athlete who was trying too hard to win, and who was unable to cope with the fact that she was unable to perform her routine without error. One error led to the next because the harder she tried to win, the less she relaxed into the situation and focused instead on trying not to lose.
Rescued by the excellent performance of her teammates on the beam, it was time for the floor exercises. At that point, Team USA was one point behind Team China. The same gymnast that failed so badly on the balance beam was first to perform her floor exercise. She was still sulking from the previous experience, held her head down and made a glaring mistake during the routine. At that point, it was clear that–no matter how brilliantly the other team members performed on the floor- Team U.S. A. could not defeat Team China.
Traders make mistakes all the time. Traders take losses all the time. The difference between a successful trader and an unsuccessful trader is the attitude about taking losses or making mistakes. Successful traders see mistakes as opportunities to improve and learn. Successful traders see losses as part of doing business. Successful traders may sulk or get sad, but they never allow their emotions to interfere with their performance. If they did, they would not be able to stay in the game for very long.
Perhaps the analogy with the Olympics is a bit overdone, but I use it as an example of how critical it is to always keep a positive attitude in every aspect of your life. Attitude is truly everything, especially in trading. Traders must always factor in the probability of losing and incorporate that into their mental attitude. Thinking about losing requires enormous discipline. Trying not to lose, rather than trying too hard to win are completely different mindsets. By putting laser focus on a solid trading plan, the probabilities for profits and losses, streaks of winning and losing and always looking at risk/reward, traders give themselves the ultimate gift.
That gift is freedom. As counterintuitive as it may seem, true freedom in trading is a byproduct of discipline. Always remembering that you can and will lose and training your brain to accept this and not affect your subsequent performance–rather, allowing it to move you forward and enhance your subsequent performance is one hallmark of a truly great trader.
Our greatest glory is not in never falling, but in rising every time we fall…Oliver Goldsmith
Until next time,
Good Trading and Brain On!
Janice Dorn, M.D., Ph.D.
www.thetradingdoctor.com
My new book, Personal Responsibility: THE POWER OF YOU, is here: www.personalresponsibilitybook.com
|
