“It is easy to dodge our responsibilities, but we cannot dodge the consequences of dodging our responsibilities.†– Sir Josiah Stamp

As discussed in previous posts, there is a significant difference between working for a company and working as an independent trader. For example, as independent traders, there are no managers to evaluate our performance, no supervisors to hold us accountable, and no public consequences.  When we work for others and don’t perform in accordance with our goals, our job will be jeopardy.  On the other hand, as independent traders, when we fail to hold ourselves accountable to the Structure and Rules we have created, we stand an excellent chance of going broke.

One effective technique to ensure personal accountability and to manage our weaknesses is to find a trading partner, friend, mentor or coach.  This person should either have an in-depth understanding of the challenges an independent trader faces or, at least, have proven business savvy.  In this relationship we should clearly communicate our goals and rules, and ask for assistance in avoiding areas of significant breakdowns.

In other areas of our lives, we often seek support. For example, most of us realize physical exercise is a worthwhile pursuit and yet find it difficult to consistently do so. Therefore, in order to better develop our skills and self-discipline, we may work with a friend or hire a trainer. Through that relationship, we can become more accountable to our fitness goals. Similarly, working with a trading partner or coach provides an excellent framework for improved accountability and financial performance.

As I’ve mentioned in earlier posts, a key element for success in independent trading is the willingness to be honest with ourselves and to confront our weaknesses.  Effective partner relationships can provide us with a structure for constructive criticism when we do not meet our commitments. This feedback process mirrors the structure for accountability found in any successful business and/or corporate venture.

The following are suggestions for an effective trading relationship:

  1. Communicate on a regular basis
  2. Set deadlines for creating and completing each of the breakdowns you have identified
  3. Create a chart with a scoreboard to reflect your wins/losses
  4. Write a clear statement about what you want to achieve and exactly what it will look like when you succeed
  5. Create a plan for each breakdown with benchmarks for success

Some may view the act of seeking a trading partnership or coach as a sign of weakness.  Our culture promotes the notion (for men, especially) that the lack of “self-discipline†necessary to handle difficult work problems alone is a sign of failure.  From my vantage point it’s a sign of strength to do whatever is necessary to keep ourselves moving forward.

There are many areas in our lives where we better succeed by not isolating ourselves but, rather, seek out the support of others.

Related posts:

  1. Structure – An Important Aspect of Trading: Part 1
  2. Integrity – A Second Crucial Element: Part 2
  3. Self-Awareness – Managing Weaknesses: Part 3
  4. 12.02.09 – Financials & Energy Hold Back Advance
  5. “The Daily Trading Coach”