If you are not growing as a trader, then this is the problem…

I received the following message via social media late last year.

• I am frustrated. Despite all knowledge on stock analysis, momentum indicators, writing journal I make losses. Whereas I know person with nothing of these making huge profits everyday. She goes and buy stock and it would fly higher. When she sells stock would go down. I am beginning to believe in luck.

This was my immediate reply:

• You’ve established that success is not a result of knowledge. Nor of simply working hard. Correct. But don’t assume it’s a result of luck.
• Rather, success is a result of an effective growth and development plan.
• See here for starters: https://yourtradingcoach.org/trading-business/how-to-kick-start-your-growth-and-development/
• This idea might be useful as well – https://yourtradingcoach.org/trading-business/are-you-closer-to-profitability-than-you-thought/
• If you’re not growing, then the problem is that your review processes are not driving any growth. Fix your review processes.

We’ve covered this topic several times over the last couple of years but I continue to see evidence that more work is required.

Let’s examine my response in a little more detail.

First, my writing was “lazy” in suggesting that success is not a result of knowledge. Nor of simply working hard.

Of course, there is some level of knowledge required. And of effort.

I simply made an assumption that the trader had reached adequate levels of both knowledge and effort. Perhaps this is wrong. I have no idea. They mentioned the stock market, but I have no insight into their strategy, their level knowledge, nor their levels of skill.

However, regardless of this deficiency in my reply, the last part is the key.

• If you’re not growing as a trader, then the problem is that your review processes are not driving any growth. Fix your review processes.

Frustration for someone already possessing the necessary knowledge and effort, will typically be a result of deficiency in strategy, processes or skill.

Regardless of the cause, an effective review process will make this clear.

Ensure your trading process captures sufficient data to provide meaningful feedback.

Ensure your review processes adequately assess this feedback in order to understand the cause of the current results and identify potential areas for growth.

Growth requires an effective feedback loop.

If you’re not growing as a trader, then the problem is that your review processes are not driving any growth.

Fix your review processes.

Ensure your trading process captures sufficient data to provide meaningful feedback.

Ensure your review processes adequately assess this feedback in order to understand the cause of the current results and identify potential areas for growth.

Happy trading,

Lance Beggs