by Adrienne Toghraie, Trader’s Success Coach
From the time we are born, most of us learn that we must be accountable for our actions. First it is to our families and then later to our teachers, preachers, coaches, and society. Since traders are already conditioned to be accountable, they should make use of this tool in reaching for trading mastery.
Sweeping it under the carpet
Traders like to think that they only need to be accountable to themselves in order to get the best out of their trading. But it has been my experience that most traders fail miserably at this task. So why are traders not able to do this?
They do not want to:
- Be wrong
- Admit that they are changing their rules
- Face up to the fact that they do not have good rules
- Realize that they need psychological help
- Realize that they do not have what it takes
If you are committed to doing whatever it takes to follow your rules to reach a higher level of profit, you should consider asking someone to help you with this task if you are not doing a good job of it yourself.
Who could take on the role of a trader’s accountability?
- A significant other
- A friend
- A trading buddy
- A teacher
- A coach
What would a person need to help you be more accountable?
- A clearly defined set of rules from you
- Your commitment to telling the truth to them
- An accounting of the trades you took
- Why you think the trades you took were good opportunities
- The risk/reward ratios before the trade
- The money management procedure you followed
- Whether or not you followed your rules
- The lessons you learned
- And at the four month periodical review, the changes you would make and why
Reward or punishment
There should be a clearly defined predetermined punishment or reward that both of you agree upon for not following your rules. Here are some examples of punishments or rewards to consider.
Punishment
- No trading the rest of the day
- Walk around the block before taking the next trade
- Twenty push ups
- Limit the size of your trades for the rest of the week
Rewards
- Ten percent of every good trade will go into a rewards account for you
- A food or entertainment treat
- Time with a special friend
- Any – my favorite, a massage
Conclusion
When you make yourself accountable in trading to someone else, you activate that part of you that has already been programmed for accountability. In doing this you will be more accountable to yourself.
