In my recent post, I described a set of change techniques that I refer to as "therapies for the mentally well". These brief, intensive approaches to change are very different from the traditional talk therapies that come to most people's minds when they think of psychology. In coming posts, I will be describing some of the specific methods and how they can be employed in trading situations--and any other life situations in which performance matters.
I also mentioned in that earlier post, however, that these techniques are not the first steps in a change process. Rather, it is crucial to establish goals for change: to know what it is you want to change in the first place.
That is not so easy. We become so engrossed in getting by from day to day, with responsibilities at work and home, that the big picture of our lives stays in the background. Year after year we busy ourselves with work and routines, only later in life to realize that opportunities have passed us by.
So the first question to address in a change process is, "What do you want to change?" Or, stated otherwise, "How would you like your life to be different?"
The usual responses to this question involve eliminating or reducing some negative state of affairs: "I want to stop thinking negatively;" "I want to be less anxious"; or "I want to argue less in my relationship". Even when there is a positive response, it is often so vague that no one can truly act upon it: "I want to feel better about myself" or "I want to be a better trader".
The absence of concrete, actionable goals--and a clear vision for the future--is a main reason we stay submerged in daily minutiae, getting by but not necessarily getting ahead.
If your life is a canvas and you are the painter, what will the finished work look like? Will it be a work of art, with a theme and integrity of its own, or will it be a random assemblage of colors and shapes without meaning or significance? A painter captures his or her vision on a canvas. What is your vision for your life's canvas?
Here's a useful exercise that might help you answer that question:
Imagine your death. You have died, and on the gravestone is inscribed an epitaph. What is written on that stone? What does it describe of what you've left behind and the impact you've had during your life? Imagine very specifically what you would like that stone to say.
Now imagine that you've received the results of medical tests from your physician. No doubt about it: you've got five years at most left in your life. There is no possible cure or remission for your disease. Within five years, your epitaph will have been written.
What would you do during those five years? Would you make radical changes and do things very different from what you've been doing, or would you simply continue on your existing path at perhaps a more urgent pace? What would you need to do during those five years to earn the epitaph you want at the very end of your life?
If what you would do to earn the epitaph is very different from what you're doing now, you quite likely are on the wrong path. You'll find your proper goals in the activities you'd stuff into those remaining five years: those, most likely, would contain the essence of what you would find meaningful, what you would like to accomplish, what you would want to leave behind.
Learning the techniques to make life changes is really the easy part. The harder part is knowing which changes you truly want to make and keeping those topmost of your mind. Mark Twain once advised people to never let their schooling interfere with their education. Similarly, it's important to not let life interfere with living.
You don't want to be that person, regretful at the end of life, hurting and having hurt others. A canvas and a rich array of paints lies in front of you. All that matters is what you make of that opportunity: to face the end with pride, fulfillment, and the sense of having made a work of art of the life you'd been given.
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8 comments:
Hi Brett,
Your philosophy is very compelling. But what about balance? If I had five years to live (or less), why not spend my money recklessly (take drugs and sleep with lots of women)? This is one reason I don't bet the farm on any one trading position. I need to keep the long term in perspective. On the other hand, had I followed the conservative wishes of my parents and not become an entrepreneur, I might be far less successful. It's a tough call sometimes but like walking, you need to start a little off balance.
Good luck trading the new year and thank you for sharing your thoughts.
Marc
Hi Brett,
Thanks for taking the time out to read and comment on my blog. I appreciate it.
I just wanted to say you really have one of the most informative sites on the web when it comes to trading and statistics. I'm looking through your archives and I feel like a kid in a candy store! There is so much to read about and test further.
I have a question for you. How are you doing your research? Are you using trade station, spreadsheets? The reason why I ask is because I'd like to do the same. Most of my observations have come directly from chart patterns and market relationships I have discovered over the years. I'd like to get into number crunching and was wondering how you go about your research.
Thanks
Kevin
http://kevinsmarketblog.blogspot.com
Hi Marc,
Keeping the long term in perspective makes a lot of sense in trading and yet, as Keynes quipped, in the long run we're all dead. If our time horizons were cut to a few years, we might want to get out of our system everything we had wanted to do, whether that be travel the world, try bungee jumping, or live a hedonistic lifestyle. But then what? Once you've done the things that bring please, you'd turn to what will bring *happiness* and fulfillment--and that might be a balanced set of activities, or it might be going balls to the wall and finishing one grand magnum opus. Whatever you'd choose says a great deal about your values--and about the goals one might pursue through self-directed change efforts.
An interesting question for active traders: If you had a very limited amount of time left on this earth, would you continue trading full time? That alone would tell you something about the place of trading in your values hierarchy.
Thanks much for the feedback--
Brett
Hi Kevin,
All the testing I report on the blog comes simply from spreadsheet work, using the database functions within Excel. I maintain a large database of historical data and also use data from my real-time price feeds: e-Signal and RealTick. Thanks for the interest; this is the one topic I'm considering doing a seminar on for the future: how to identify market patterns and integrate them into short-term trading. Keep up the good work with the blog!
Brett
Most interesting and provocative post, Brett. Johnny Cash's singing of the Nine Inch Nails song 'Hurt' has a powerful message, understood better by older folks who can almost touch their mortality, that material accomplishments are just 'an empire of dirt' relative to the wake of human hurt left behind at life's end. As life slows, there is much time to dwell on these painful, insensitive and selfish mistakes. If we could all just apply the Golden Rule in all our dealings, as another song says, 'what a wonderful world this would be'.
With five years left what would I do? I would continue to trade right up to the end, because it keeps me connected to the real world and all its complex inter-relationships, and I would continue to contribute to blogs, my way of leaving some insights from one who's been through the school of hard knocks, (translation: I'm longer in the tooth than most traders). My epitaph might read: "He cared about the evolution of the planet".
The internet has given us an amazing way to reach out and interact with people in every corner of the world. Education is, IMO, the most important thing that can save this planet from destruction, and the 'net gives us all that ability to educate - as you are doing for of us traders, Dr. Brett. Thanks for all your indefatigable blogging.
Glen
Thank you very much, Glen, for the comment and the insight. To leave the world just a bit better than when we first entered the stage: that's not a bad start for a goal and vision whatsoever!
Brett
Not only would that make for a great seminar, but it would also make for a great book! When it comes to trading, I don't think there is a book out there that talks about using excel for trading research...
Kevin
Hi Kevin,
It's an interesting idea, but I think a video would work better than a book for that topic. Books are good for disseminating information, but teaching skills is best done either live or with video, to capture more of the procedural, how-to aspects of skills. Thanks for the food for thought!
Brett
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