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bobcollett

High Value Actions

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The other day, after I complained about poor trading performance, my friend, a prominent member of TL, (he drives a Japenese make truck), said, its all in my head!!

 

So I pulled out that old faithful "Trading in the Zone" for another read.

Anything of value could have been printed on the back cover.

I then had another look at Ari Kiev.

He says "100% commitment" and"Trade your strategy, not your emotions"

That fits on the front cover.

 

So I had a look on the internet and found the attached article.

The article claims its unnecessary for traders to reign in their internal experiences to trade well. Instead , traders must take meaningful ,high value actions. HVA.

These HVA's seem pretty "obvious" to me but I would welcome some comment from all the resident psychology members and their students

 

Is the "obvious' all thats required?

regards

bobc

SFO_Take_Control_of_Your_Trading.pdf

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Bob, please explain why you felt it was important to mention that Japanese truck reference.

 

Hi MightyMouse,

Maybe to create a bit of intrigue, but more so to Not embarrass my friend.He might not want to be part of my question!

kind regards

bobc

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Generally speaking (there are a couple of things that are not essential), this is sound. That I say this should come as no surprise since I've been arguing these points for years. The surprise is that Gary came up with it. Perhaps he's evolved.

 

If you have a thoroughly-tested, consistently profitable trading strategy, then, yes, whatever problems you may be having are in your head. If focusing on these "HVAs" does not bring about the desired solution, then perhaps you do not have sufficient confidence in your strategy, and that confidence is essential if relying on these HVAs is to yield satisfactory results.

 

Give it a shot. Record your internal and external behaviors and their results. Pinpoint the source of the difficulty. Then you'll know where to go from there.

 

Db

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I'm not particularly impressed with the article...

 

For the original poster...in my experience, it is often the case that a person encountering difficulties trading cannot identify the "high value action" that they should take to obtain a better result...

 

There is a two step process that can help...first you backtrack from the most recent "negative result" through the series of actions that caused it....within this process you are attempting to find the pivotal element that preceed that negative result...often it is a process of gathering data, processing it, then coming to a decsion....somewhere within that chain of events, a problem exists....usually that pivotal element consists of unconcious or sub-concious decision that the trader makes just prior to trading....

 

Secondly you look closely at this chain of events and try to identify a "stopping point"...usually some part of the process just prior to where you make a decision one way or another....THAT point is where you want to intervene with another, more productive strategy.

 

The crucial questions are as follows

 

1. Can you accurately identify the internal sequence of events that causes the problem

2. Can you find the place within that sequence where you can intervene with a superior strategy and

3. Can you create a superior strategy to substitute within that sequence to transform it from unproductive to your desired result...

 

 

This is logical and it works....alternatively you may want to try the advice I read in one of DB's threads, where a person reveals that a behavior he is engaged in is causing him difficulty trading, and DB suggests that he "just stop doing that".......:)

 

Either way, best of luck to you

Edited by steve46

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alternatively you may want to try the advice I read in one of DB's threads, where a person reveals that a behavior he is engaged in is causing him difficulty trading, and DB suggests that he "just stop doing that".......:)

 

While I'm sure there was more to it than that, this is in fact a legitimate form of Reality Therapy. Not unlike the old vaudeville joke: "Doctor, it hurts when I do this"; "Well, don't do that".

 

Db

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Bob, please explain why you felt it was important to mention that Japanese truck reference.
maybe it was kinda of a quality statement?? Perhaps it was a compliment...japanese trucks are much better in the mud and off the road jungle stuff...much better than fords..chevrolets...dodges...i know from having run them in central america in the jungles....the other three will carry more but don't hold a candle to 4 wheeling in the mud in the jungles. perhaps he also uses candlesticks which are better than bar charts....so the japanese truck statement can be a compliment and quality statement. no need to worry about a japanese truck statement ....it doesn't mean he was mocking his friend.

 

i ride a moto and get mocked on this forum... but i don't care..its funny to me....at least i am free....i can place a trade in a cyber cafe ....crank silver queen up and sail on down the road with wind blowing in my face enjoying life while those that laugh at me are wringing their hands in front of their computer screens hopng to get out of the next trade alive...while i'm riding the profits can be rolling and others are crying.....

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