"Competence precedes confidence: Winning mind-sets result from mastery, not the reverse." - from Enhancing Trader Performance by Brett Steenbarger.
Deals quite a blow to traditional trading literature, but is something Dr. Steenbarger finds among all peak performers. Solid mindsets come from solid action. You need to develop successful habits before you can become successful. Unfortunately, The Secret isn't going to make you a trader (hint: lots of practice, failure, contemplation, more failure, testing, improvement, research, experience, etc will). More on this later...
Anyway, I haven't done any trading. I watched the FOMC and am glad I avoided it. Otherwise, I've been reading, watching various markets, testing out ideas and working on new ones.
"A spreadsheet with a statistically significant sample of trades which demonstrate positive expectancy precedes confidence...", hmmmm, hasn't got the same ring to it has it?
ReplyDeleteLove the way you put the hint. Sounds very true to me.
ReplyDeleteL&W, not sure I can sell a book using that (:
ReplyDeleteFFXD, unfortunately overnight success rates are dismal! :) But, in the long run, that's good for those who stick with it.