Trading is a craft that requires the integration of patience, dedication, discipline and a plan for action.
Understanding this perspective leads to a process of inquiry: How can we improve the practice of our trading through focused study? How could that then help our action plan?
I suggest a focused study of subject matter experts and three column reflective journaling, a journaling technique that I have used in countless ways (hat tip to the psychologist and humanitarian Kurt Lewin and his two column journaling technique).
First, understand what it is you want to learn. Specifically practice describing the knowledge you believe you need to acquire. This act alone will serve to help the universe give you what you need. Your intentions and public commitment to study will aid you. Be careful what you ask for.
Then, pick an author and start reading. For each book or work, make three columns with the following headings on a sheet of paper:
Summarize What He Said
My Thoughts about What He Said
What I Will Do
Columns 1 and 2 are fairly self-explanatory and thought oriented. Column 3 is action oriented: you commit to your Self to either apply your new found knowledge in some way or investigate further claims and hypotheses. Put a priority on each item and describe how you propose to apply it and/or check it.
For those items you want to check, create a separate Master Research Task List and sort your ideas by priority and the possible payoffs. Your Master Research Task List will serve to prioritize the various research items from all of the different works you read.
Your first three column journal page on a book will be the first page of the Research Section of your trading journal. As you continue to read, add one page with three columns for each book. For each author you study, build a chapter with multiple pages.
Prioritize your authors and study each one deeply rather than skim several at once. To study is more important than to skim. Over time, scan a wide set of authors to get a sense of "resonance." You will figure out who to study. Ask others you trust for ideas if you get stuck.
If you have the discipline and focus to study in this way, you will create a major edge for yourself over the legions of impulsive, discretionary traders.
Tangible benefits:
Your focus and attention will improve.
You will refine your beliefs and develop an inquiring mind.
You will exercise both your creative and critical thinking skills.
You will improve your discipline.
You will learn to act on evidence that has been weighed and measured.
You will be growing your body of knowledge.
You will learn to make more and more distinctions.
In other words, you will walk along the path of mastery.
Notice that I said the path of mastery, and not the path to mastery.
You already have the mastery within you, waiting to be called forth. The journey removes the obstacles and distractions if you have the will.
Mastery is walking the path, not the destination. Should you choose to walk it each and every day, what will you find?
Good trading!
