I’ve been busy trying to organise and update several other pages on my blog recently with loads more work still to do and neglecting to put up any new posts for my dwindling handful of followers here. To get around this I’ve decided to cut and paste straight from my trading plan page something I’ve just knocked together after a day at work. Please excuse the poor grammar and spelling in such a hastily written article.
This section is where I outline the guiding philosophy in my trade plan. The trader’s guiding philosophy, being a principle first mooted by Mr W R Booker.
Traders that I have empathised with over the years, often have a way of thinking about their trading, drawn from some of their life experiences before they took up trading.
Shonn Campbell trades a style which he calls ‘Inventory Trading.’ He uses the retailer trading model of buying and selling products or services as his guiding philosophy and sometimes even uses his experience coming from an agricultural community to back it up. He’s even written a book about it. Rob Wilson uses a guiding philosophy of military tactics, often making analogies to his short term trading using the military tactics of an insurgent against a super power. Quotes from Sun Tzu are common place and he refers to things like the ‘fog of war,’ jetty rush’ and ‘recovery strategies’ which is unsurprising given that he has commanded a Royal Navy battleship. Matt LaCoco talks about the motor bike racing he has been involved in and relates his past success’s he’s had in that field to his style of trading. He talks about the risk of falling off the bike in relation to the speed of travel around the circuit, and was able to win a championship by not riding faster than everyone else, but by falling off less.
When it comes down to it, the style of trading we need to use to be most successful, seems to have to match up with our personality which is both nature and nurture. The nature bit is probably our intelligence level and our natural creative talent and the nurture is our own successful risk taking experiences within the confines of our natural abilities. When I refer to intelligence, I don’t necessarily mean being able to complete complex cryptic crosswords or IQ tests in as short a time as possible, although maybe that can help certain styles of trading. The intelligence quotient is the result of just one way of measuring intelligence, apparently there are many other ways that it could be done. I heard once that IQ tests were invented and marketed by people who were good at these sort of tests. So of course they like to think of themselves as the intellectual elite and superior to others with lesser ability at these tests. IQ could be thought of as a term invented and used as a power thing, and a put down for those not in the group. Read some of Taleb’s books/ twitter comments and you will notice there is rarely a moment where he isn’t implying how intelligent he is and how dumb someone else is. I’m sure many extremely high IQ types are geniuses, but there is no doubt that there are many failures in life whose genius abilities haven’t enabled them to be a success and many idiots who have done the complete opposite. Why is this so, if they are such clever bastards? Being a dumb ass myself, with an old school report that said ‘Works hard, but as thick as pig shit!’ Well, I would say all these things wouldn’t I, to boost my own level in the pecking order of life. I personally don’t suck up to clever bastards, however I do want to pick their brains and use what they may not even be able to use themselves, probably because they can’t understand that all they need is a successful risk taking philosophy and not a super fast brain.
Whether you are a high street retailer, a military general, or a motorbike racing champion you will have taken risks on, managed them and found or observed some sort of success in this risk taking model, for you to relate to them in your trading. You may even not actually need the experience if you can relate to others who have. What it appears to do somehow, is to super charge your trading and take you to the next level of professional discipline that is required to move you through the barrier of frustration to success. IQ may not actually matter a jot. So if you’re a dumb ass like me, don’t give up so quickly and just find a successful risk taking model to relate to.
For me my guiding philosophy / risk taking model for my trading plan is what I am now calling ” Cake Walk Trading,” which I’m going to delve into more deeply in this section of my plan, explaining how it all relates to my own style of trading.
To be continued……
For now those seriously interested in what this ‘Cake Walk’ model is about, can get an idea from this blog post I wrote over a year ago about ‘A lesson From My Childhood Holidays.’ https://fxoutlier.com/2015/05/10/a-lesson-from-my-childhood-holidays/
Here’s an old disused Cake Walk machine that my guiding philosophy is based on.
If you have read that article and now got this far, you may be thinking that I’ve gone completely mad and that I certainly am a complete dumb ass. You maybe thinking such a simple act as winning a few penny’s as a child couldn’t possibly be used in trading, against some of the smartest minds in the world. It is such a ridiculous notion and just too much for you and you probably think everything I’m writing about is a load of bollocks. Well that is most likely because you have a much higher IQ than I, and can’t bring yourself to take any advice from one of your inferiors. That begs the question, if you are so clever, why are you reading such a poorly written, non-academic and stupid article in the first place? Then again you maybe just one of the multitudes of failed genius’s out there, trying to pick the brain of a lesser mortal, to use the occasional accidently good idea they produce, that they are too stupid to use themselves!
If you really want to know if you’re as clever as you think you are, go here.am-i-dumb.com