Sunday, November 06, 2022

Trading Psychology Advice - 3: Solution-Focused Trading


The first post in this series emphasized the importance of getting the right kind of help--mentoring vs. coaching--for your trading challenges.  The second post stressed the value of structuring your learning processes the right way, by first pursuing competence and then by cultivating expertise.  In this third and final post, I highlight a valuable approach to making changes--in life and in trading.    

The solution-focused approach that I write about in Trading Psychology 2.0 and throughout this blog reflects a unique psychological perspective.  Instead of solely focusing on our problems, we should examine occasions in which our problem patterns don't occur.  Very often, it is in the exceptions to our problems that we can identify what we are doing right.  So, for example, let's say that I have a problem with trading emotionally and impulsively during periods of frustration.  Well, I don't go on tilt every time something doesn't go my way, so what am I doing to not become overemotional at those times?  Upon reflection, perhaps I'm talking to myself differently on those occasions.  Perhaps my positions are sized or structured differently.  Whatever I'm doing when my problems don't occur could offer the kernels of solutions.  What's great is that these are solutions genuine to me:  ones that are already working.  

Furthermore, the exceptions to our problem patterns are usually there because they reflect some underlying strengths that we can leverage personally and professionally.  For example, I may find that I trade much more selectively and avoid marginal trades when I talk out my ideas with a trading partner or teammate and when they do the same with me.  My strengths in processing information interpersonally (talking aloud rather than writing or keeping ideas in my head) and my social strengths (enjoying working with others and helping them) enable me to be my best self during my trading.

What I've shared in my writings is that, in some measure, you are already the trader you seek to become.  The exceptions to your problems hold the key to your solutions.  By doing more and more of what works, we can become more and more of who we hope to be.  

Further Reading:

Keys to Solution-Focused Trading

Learning How to Lose