The recent post described the importance of learning loops in cultivating trading expertise. I would go so far as to say that elite performers reach their status by becoming learning machines: performance becomes a stimulus for learning, and learning becomes a stimulus for performance. The loops ensure that learning becomes cumulative, not simply the same sets of lessons learned many times over.
Learning loops can be broken down into two components: preview and review. Previewing trading means setting plans at the start of the day, both with respect to markets and one's trading of those markets. The key question for previewing is, "What do I want to accomplish today?" You want to clearly identify what would make the day a success for you: what would constitute good trading of today's market. Previewing is both establishing intentions and goals: it is a forward-thinking process that guides one's behavior over the course of the trading day.
Reviewing means going through the trading day and evaluating one's own performance. Did you accomplish what you set out to do? If so, how did you achieve your goals and how might you bring that achievement to tomorrow's trade? If not, what interfered with your goals for good trading? How can you deal with those interferences effectively tomorrow? Reviewing also means reviewing markets: How did we trade? How well did you identify opportunity? Where were the good setups? What could you have done better?
Every day you preview, every day you review: the combination of the two keeps you in the self-coaching role. They also keep you on the path toward expertise and elite performance.
In Enhancing Trader Performance, I quote General George Patton: "Courage is fear holding on a minute longer."
Training, I note, provides that extra minute.
Day after day of previewing and reviewing creates the inner strength and confidence to move forward even under the most daunting conditions.
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3 comments:
Hi Brett, With the help of your books I've made the following 4pm reviews a habit. Thanks for the long distance tutoring! :-)
a) I mark my digital charts with my position entries and exits and copy and paste them into a Word document
b) I copy and paste my exact entry and exit records from my trading platform into Word
c) I talk through each trade, and write up notes on what I was thinking at the time. Sometimes I wonder "what was I thinking about during THAT (read bad) trade".
d) I also copy a chart that has the intra day SPY,avg TICK,TRIN, ADV/DECLINE charts and write comments on the day.
Yesterday I noted that I traded well in the 1st half hour - I was looking for extremely high relative volume in popular trading stocks.
I traded on some poor setups late morning - before I have a good market read (trending, not trending).
I traded much better later in the day as I got in sync with the OIH and correlated oil and gas equities.
Additionally, I noted that having alerts set at yesterday closes on all stocks would have alerted me to some setups (setting better alerts needs to become a habit), and thoughts on how I could have caught MON yesterday also are on my mind.
All of this because of my 4-5pm review sessions.
Thanks again for your persistent, well thought out work. P
http://screencast.com/t/MDIzMDFhYTUt
New poll up....how many "lay people" in your life (and get your mind out of the gutter) have mentioned to you in the last 2 weeks, how weak the dollar is.
http://oahutrading.blogspot.com/
Great post...this is exactly what I do on my Blog over at http://www.eminiplayer.com
The Key Levels and Scenarios posted the night before are for "preview" (and preparation(, and then I post a review at the end of the day identifying the best setups. It has helped tremendously.
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