Three essential activities for a trader are:
1. Planning — scanning, understanding market environment, deciding strategy as being a swing or positional one, deciding entry & exit
2. Execution — showing up, placing the order, holding the trade, booking
3. Reflection — journaling, identifying weaknesses & strengths, reinforcing knowledge
There is a tendency to gravitate towards one of the three at the expense of the others two. On the basis of whether you balance these activities or not, you fall into one of these four profiles:
1. Driver — You plan & execute. You are obsessed with results, win rates, profits made per trade. You have no time or energy left for journaling or attempting any conscious improvement in your effectiveness.
2. Drifter — You execute & reflect. You enter the trade fairly well, but exit prematurely in the fear of booking losses. You do look back at your trades, but change your style as soon as you find that it is not working. Some of you even trade on tips, & venture wherever your latest fancy carries you.
3. Dreamer — You plan & reflect. You love strategic planning, but lack the courage or discipline to follow your own words & thoughts. You don't show up, & then rue missed opportunities. You rarely complete much of what you start. Your search for the holy grail never ends.
4. Trader — You plan, execute & reflect. You learn from your actions & redirect as needed. You understand that probability is more natural than certainty. You understand that opportunities are useless if not taken advantage of. You keep improving your skill set, with no regrets.
So, are you a 'trader'?
Credits to Todd Henry's Die Empty.