Quote from Lucias:
Me:
I did good and bad. I maximized my risk/adjusted return on a sequence of trades but I missed the forest for the trees. I had predicted the low, high, and everything and everything happened exactly as I predicted.
Coach:
First, you did great. You recognized when you were wrong and took some profits. Your account this month reaches new equity highs for the month. That's great. However, you had a bigger plan that would have resulted in much greater profits. What do you think went wrong?
Me:
Maybe as B. has commented, I made a move2move trade when I meant to make a trade2hold trade.
Coach:
That's a good way to think about it. But, that's too simplistic. What did you do wrong?
Me:
I didn't listen to Jack Hershey. I had a game plan but when things changed, I adapted but then I didn't go to step 2. I had a cognitive error that because I was right in changing my game plan that the game plan changed. I knew had the cognitive error because I said it to myself.
Coach:
Exactly. You didn't have a good game plan for step 2. You did. It was your original plan where you had predicted everything. You executed a successful play but you didn't execute the plan. You're going to have to take a lot more risk to do the returns you seek. You gotta get ready have 1,2,3 plans.
Me:
Right, I see my problem now. I had some rules that got in the way. I work on principles and will adjust those rules now.
Coach:
Exactly. The rules got in the way. Also, remember when you're tired of running the ball then call a time out and do the swap. You made a good play. You failed to call the time out.
Me:
True words.
Coach:
Listen, I know you're taking this as a loss. But, this is a great moment because now we recognized 2-3 errors that you made. Trying to capture every opportunity helps because it keeps you market focused. Take that idea and the idea of multiple game plans and being in the "game" and you're going to see what you're looking for. Also, if you get tired then make the hand off. Don't just quit. And third, don't overestimate your abilities. A good call or play is just that. Listen to what you say and act on it. For you, its not going to be a continuous process... that way lies ruin. You're going to have 2-4 discreet plays to make per day. And you're going to make them when needed.
Anyway, you will not let this bother you. Predict. Execute. That's the cycle. Keep practicing it. On the path to glory, there lie many defeats that were victories.
