I recently came across Josh Waitzkins book after having listened to his interview with Tim Ferriss. Josh Waiztkin became a superstar in chess as a child and a grand master at a later time, where before he made a radical change and pursued his career as a kampsportsman. In both fields, he became top in the värdsklass.
In his book ”Knowledge about learning”, he shares many different tips, techniques, and concepts on how to develop superior skills and becoming better in any area. I compressed the bottom 4 of the main lessons from his book and put them into the trade context. But I urge you still to read the book for yourself to learn about all the other lessons and tips he shares with them – it will definitely be worth your time.
Regain focus in times of adversity
Waitzkin had to take tough decisions under very challenging circumstances – in the heat of a schackdrag or during kampsportsmatchen. To keep control over your emotions is the most important factor and it separates the winner from the loser.
In sports, you see how the player put a towel over your head when sitting on the bench, the tennis players choose their rackets and other athletes do not even see on the field during a time-out ?!
Waitzkin emphasizes the importance of regain your focus, separating yourself from the scene in order to gain a new perspective and a clearer picture. He did it by splashing water in the face, drink water, take deep breaths and do some exercise. This is what we call ”psychological flushing”, because it takes your brain from the topic for a minute or two. Afterwards, you will back up to date and with a whole new perspective.
Every day, we deal with the psychological aspect of the trade that make the difference between profit and loss. An impulsive move after having missed a trade has two examples. If you have difficult to deal with your feelings, and difficult to separate yourself from your trading platform after a trade, walk away for 5 – 10 minutes, do something completely different and when you come back you can look at things in a different way.
Please note, the deficit, and to be present
Every day is bombed, we exciting news, ads, uppmärksamhetsfulla headlines and inspirational stories. What this is doing to our minds, can be deadly for high-performance. We are so accustomed to seeing new and exciting things all the time that we easily become bored. When nothing happens, we are looking for distraheringar which often leads to mistakes being made.
Trading is not always exciting and sometimes it happens not so much in the markets for several hours or even several days. How you handle these situations determines your fate as a trader. The professional traders are focused, analyze their previous business, looking at his trading plan, journal or just use their ”leisure” in a more creative way. On the other hand, trying to amatörbranschen create tension.
Know your strengths
”… almost without exception are the master specialists whose styles come from deep awareness of their unique strengths, and which is by far the adept to control the battle in that direction.” – Josh Waitzkin
A trading system is a very personal thing and it needs to be shaped according to your personal strengths and weaknesses. Examine yourself: Are you patient? Risksökande? Can you cope with losses? You can focus for a long time without having to take a break?
Every traders should adjust their trading parameters according to its own profile. One size does not fit all.