- : September 19, 2021
- : B. Krishnakumar
Dr Jekyll & Mr Hyde
One question that I encounter a lot in training sessions is how to develop the right mindset for trading or how to develop discipline or how to be patient and wait for the set-up to happen or a combination of these questions.
The simple answer is by mindful practice. We cannot imitate the character in the famous novel Dr Jekyll & Mr Hyde who had twin personalities. The qualities and traits that we have imbibed consciously and unconsciously are carried over to trading as well.
Let us be clear that your personality will not magically change from the non-trading activity and trading activity. So, if you are someone generally undisciplined then you will carry over the same personality to trading as well. Or, if you are someone who is extremely impulsive in decision making or prefers fast-paced action then you cannot become a patient long term trader.
What is essential is to either develop a trading strategy that suits your personality or try to develop the requisite mindset before you venture into a particular style of trading. For example, if you want to be a long-term trend follower then patience is something that you will require in abundance.
You have to develop patience in all other activities so that it automatically percolates to trading as well. Try to engage in activities that would help you develop patience. Try babysitting if that is an option. Or try to teach a school kid which will force you to develop patience. Or get involved in gardening. If you lack discipline in following your system, it could be because of your personality or because of your lack of conviction or confidence in the system. If it is the latter, then you have to realise that and address it.
If it is because of your personality, then try to be disciplined in everything you do in life. For example, simple things such as being punctual or keeping up your word would go a big way in developing discipline. Another important aspect is to follow traffic rules diligently. Avoid breaking traffic rules or jumping the signal etc.
Before I wind up, I wish to highlight the role technology plays in making us impatient and /or lazy. I have seen this trait across quite a few students who are relatively young. A classic example I can narrate from my personal experience is the OTT platform.
I strongly believe that the increased popularity of the OTT platform is making us impatient. I can sense this in my case. I am no longer enjoying the program as much these days and more often than not, there is an urge to hit the fast forward button.
When OTT platforms were not available, we watched programs on television and we would wait patiently for the ad breaks to be over and watch the program in its entirety on most occasions. We probably enjoyed and relished the programs more when we watched them on television. But the OTT platform makes us more impatient, and we invariably fast word the program at the slightest hint of a lag in the content. I hope you guys share the same thought. Just ask yourself if this is the case.
The other significant negative influence of technology is our urge to get instant solutions. The prevalence of the internet, easy access to technology and mobile phones are making us look for instant solutions or instant gratification. This is my belief, and I might be wrong here.
Why I say this is that I often get to read so many questions which can be answered or resolved with a little bit of time spent on seeking out solutions. But because we are so used to instant remedies, we just choose the easier option of asking this question without trying to think of a solution.
Hope you find this post useful. Try to consciously engage in activities that will make you become more disciplined, more patient and more diligent in what you do in trading and life in general.