Thought Progression Exercise

[MrPaul 10]

A good friend of mine, one of the most intelligent individuals I know helped me with some issues I recently had with my trading. He had me try what he called a "Thought Progression Exercise". You just apply it to anything you wish to really contemplate with the end result being an idea of what you can do to achieve something you wish to have. It only seems to work if you actually intellectualize on the questions and not just read them haphazardly. I figured a post on the subject might help somebody out.

 

Here is an example using "consistency" as it pertains to trading.

 

What is consistency? More winners than losers? More losers than winners with winners being much larger than losers? For how long? A week? A month? A year? Ten years? Under all market conditions? What exactly is consistency?

 

Is consistency successful trading? Under all market conditions? What does trading success mean to you? Is your view short or long term? How is it measured? Against another job? Another trader? A standard of living? Will this ever change?

 

What goals can you form from the answers to these questions?

 

How are you going to achieve these goals?

 

When will you start?

[TinGull 10]

A good friend of mine, one of the most intelligent individuals I know helped me with some issues I recently had with my trading.

 

Aww, Paul! Thanks for thinking I'm smart ! JK HAHA!

 

This is a really nice exericise. I did a similar thing when I began my sales gig a couple years back and writing all of that down and looking at it every weekend to reflect really was a huge help.

[wsam29 10]

I was about to start a thread before I saw this one.

 

It's also a "Through Process" that I do before each trade.

 

first trade of day

 

see a set up

 

inital thought, "Am I willing to lose if I enter this trade?" if yes, enter trade, if no, sit on hands. stop loss and profit targets already known before hand.

 

first trade out of the way:

 

if trade turns out to be a loser.

 

second trade set-up

 

Initial thought, "Am I willing to dig myself into a deeper hole if I lose?" if yes, enter trade, if no, sit on hands of call it a day.

 

if trade turns out to be a winner.

 

second trade set-up

 

Initial thought "Am I willing to give back my profits if I lose?" if yes, enter trade, if no, sit on hands or call it a day.

 

As you can see its a loop of the same thought before each potential trade.

 

I don't have a profit target in terms of ticks because I found that is all I focus on at the start of the day, your emotions and state of alertness plays a big part in your day to day trading, so if you'r not feeling up for it, just don't trade or continue to trade for the sake of trading. Nothing is worse then trying to hit your profit target if you are not 100% mentally there. There is a good chance yuo'll dig yourself into a deeper hole.

 

See if this helps with your trading.