I am amazed how often I learn something about one area of my life while reading about another. A good example of this is an article I read recently about Tenkara fly fishing. After fifty-years of Western fly fishing I have taken up the Japanese Tenkara fly fishing. It is simpler and more efficient.
What captured my attention was how most people do not have 30 years of experience. They have one year of experience repeated 30 times. They keep repeating the same thing.
Scientist have a concept called “hypothesis rejection." Rather than seeking evidence that confirms what you already think, you try to disprove it. This will allow you to have greater confidence when it resists all your attempts to break it.
This may sound simple, but it takes real determination to attempt to break your process. Most traders and investors get comfortable with what works. Especially if it is giving results like everyone else. See If It Ain’t Broke…BREAK It by Robert J. Kriegel (Amazon.ca link)
But professionals test what they’re doing to confirm or deny that its the profitable process. Using a review and revise method, professionals avoid the pitfalls of institutional and retail traders.
In the midst of all the constant changes in the markets, pause. Ask a few simple questions that clarify whether what you have been doing is still effective. Even old vanguards like, Warren Buffett, have changed investment philosophy and strategy. They too have adapted to all the changes in last decades.
If you are managing your assets today the same way you did three years ago, you should take a pause. Try to disprove or break your process. You will learn more about what needs to change. Or you will better understand why it is working. Avoid being blind-sided by the next correction. Take back control of your process.
Resources:
If you want to learn about this and more I have two resources for you:
- Online Course: Trade Like A Pro (TLAP) course. Learn to trade like a Professional at your own pace. Read the testimonials here.
- Group Coaching: Join the Mastermind Group and get the TLAP course for free.
Be well and trade like a pro,
Lloyd
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