Friday, December 16, 2016

The Power of Self Awareness in Trading

Bertrand Russell had a point.  A good part of wisdom is knowing what you don't know and being self-aware with respect to your flaws.

Here is an interesting observation.  Some traders I work with choose to share their journals with me daily.  In the great majority of cases, they are among the top performers.  It is quite rare that struggling traders keep a routine journal and, if they do, choose to share it.

Perhaps this is the reason:  the best traders sustain self-awareness.  They know they have flaws and they want to be aware of those flaws, so that they can minimize those.  They are also aware of their strengths and seek to stay grounded in those.  Traders lacking self-awareness can't be aware of flaws and so unwittingly repeat those.  They attempt to maintain confidence by overlooking vulnerabilities, not by sustaining awareness of those.

A self-aware trader can describe in detail his or her trading process.  A self-aware trader also has a process for working on himself or herself.  Humility and awareness of limitations become strengths when they are tied to a drive for self-improvement.

Further Reading:  Evaluating Yourself as a Trader