Expanding upon the theme presented in the latter part of my previous post, I would like to build upon the idea of how continually setting and achieving goals is a catalyst for realized improvement of who we are as traders.
Consciously approaching everyday activities (not just the stock market) with a positive frame of mind is very important in helping us navigate through tougher times. On the other hand, if we allow negativity to overwhelm us, we become bitter, lose focus on the task at hand and deviate from our plan/strategy.
In order to keep our long term goals in focus, we need to actively engage in setting and achieving new short term goals on a regular basis (preferably every day). The focus of these goals is irrelevant as long as the energy is directed toward improving some aspect of trading OTHER THAN making money (because that is ultimately out of our control). If we put in the work toward improving some aspect of our trading, and we do it toward a positive source, we are going to see improvements over time.
The key here is maintaining a positive frame of mind while developing goals. Sure, it seems really simple and mundane; however this shit is not easy…it’s tough enough to sit down and develop new goals on a regular basis , let alone accomplish those goals. Therefore things need to be kept manageable. Goals need to be challenging but they also need to be attainable.
With short term goals, if the bar is set too high, it will be a struggle to regularly achieve these daily goals. This will lead to frustration and, in the majority of cases, failure/relapse. Swing for the fences with long term goals.
If the effort to learn and progress is realized through the accomplishment of short term goals, steady improvement can and will be a realized function of daily interaction with the stock market.
I can’t hammer this point home enough, but residing in a positive frame of mind, not only while trading, but throughout the day is of critical importance here.
I have a personality that tends to gravitate toward the cynical and negativity often seeps into my consciousness. In these periods, I’m usually left frustrated and make little intellectual progress. With frustration comes confusion.
Guess what loves to prey on frustration and confusion?
If you guessed “greed” and/or “apathy”, then you are correct.
There is little doubt that times get tougher when losses start piling up (in the form of monetary loss or W/L record). Even if you stick to your rules, drawdowns are inevitable. Remaining optimistic when things get hairy is a difficult task. Trying to navigate through the shit without taking on too much damage is the goal. It’s probably not the first time, and, if it is, it won’t be the last.
The key is to devise ways to be productive instead of wasting time being pissed off and frustrated. Hell, even if you are pissed off and frustrated, if you expend energy working toward a place of improvement, your work will not be in vain.
As an anecdote, for many years I was a swimmer…I recall many a practice just hating life and wanting to punch someone in the face. Instead (most times) I would take out my frustration on the drill at hand and want to destroy the asshole pushing off in the lane next to me. Sure, I was salty as all hell, but I was directing my energy toward a positive source instead of that guy’s stupid face.
When I hit my stride and am trading well, it feels effortless. The frame of mind that I create when in the midst of those moments plays a significant role in my approach to the market and life in general. I am happy and positive and this is reflected in all aspects of my life. A long term goal of mine is to try and maintain the level of consciousness that I feel when I’m trading well.
When positive energy is expended, in my experience, typically the universe will give back. I’m not talking about monetary gain…even though that is the end-game, it is earned as a result of hard work, dedication and focus. The money is not the product of something superficial like greed.
By keeping losses manageable, consistently pursuing goals, and taking definitive steps toward a state of mastery, each day in the market can be a positive experience…even when your account balance says otherwise. The positive energy is a self-fulfilling prophecy, resulting from hard work and perseverance, which in turn creates more positive energy. It’s a powerful cycle.
My best to you all.
-EM
