There are obvious parallels between sports and trading. Most prominently, both activities rely on two primary attitudes: offense and defense. Both tactics have their place in a balanced approach to Peak Performance.
Because they are so different, you might assume that one is either in one’s assertive personality (going for it!) or on defense (playing-not-to-lose) and that the line between the two is always distinct. This week, however, my tennis coach busted that illusion.
I’m a competitive tennis player. Although I play five times a week, my coach showed me that I have been in a covert defensive mode, playing-not-to-lose much more often than I realized. In fact, I was giving into an emotion (fear/intimidation) that I was not consciously aware of, yet it was actually running my tennis game.
The fear, however, wore a slick disguise. In playing-not-to-lose, I made few errors, so it actually looked like I was a competent, consistent and disciplined player, albeit on a lower level than I was truly capable of. Plus, I have a good forehand from playing ball as a kid, which got me points when I needed them.
Nevertheless, a stealthy fear was responsible for a ho-hum serve, an erratic backhand and wobbly volleys. I just wasn’t 100% committed to making these shots. My coach helped me see that I was hiding in plain sight like an ostrich, equivocating in my own mind and subtly sabotaging my results.
Guess what? The same thing can happen in trading. After a few years in the saddle, we may become subtly avoidant, even as we remain engaged with the market. We might gratify ourselves with many small winners and enjoy the satisfaction of keeping losers small, but stay stuck in a breakeven or marginally positive performance zone far below our true profit potential.
So… are you getting out of trades too soon, trading too conservatively, indulging yourself in Simulation mode? If so, stop hiding out, bust out of your comfort zone and do what’s necessary to take your trading to the next level.
