To excel in any activity—whether it is mental, such as trading, or physical,
such as swimming—we need to learn specialized skills. These skills give us
the necessary requirements to look at, think about, and behave toward
events in a manner different from what we may be used to or what we may
have been taught.
However, beyond the sheer mechanics of the activity—which just about
anyone can master—lies a particular thinking methodology or strategy that
leads to excellence. Although few people have it, such a thinking
methodology can nevertheless be learned.
Any thinking methodology requires a series of approaches to goals and
problems. These approaches might be better described as mental techniques,
even skills of thought application. For example, one such skill might be the
ability to identify those conditions that are conducive to making a common trading error before it actually happens. Other techniques or skills include:
Learning the dynamics of goal achievement so you can stay positively
focused on what you want-not what you fear.
Learning how to recognize the skills you need to progress as a trader
and then stay focused on the development of those skills, instead of
the money, which is merely a by-product of your skills.
Learning how to adapt yourself to respond to fundamental changes in
market conditions more readily.
Identifying the amount of risk you are comfortable with – your "risk
comfort level"-and then learn how to expand it in a way that is
consistent with your ability to maintain an objective perspective of
market activity.
Learning how to execute your trades immediately upon your
perception of an opportunity.
Learning how to let the market tell you how much is enough, instead
of assessing the potential from your personal value system of how
much is enough.
