How to Beat Procrastination
You want to make it a point to trade no more than two of the three trading sessions, and learn to manage your time so thai you above all avoid the boring and illiquid hours between openings. Since the body is pre-wired to seek out stimulation at all rimes there is possibly nothing worse for a trader's mind than boredom, and
Remember how you felt the last time you placed an order Were you anxious to jump in or afraid of losing Did you procrastinate before picking up the phone When you closed out a trade, did you feel elated or humiliated The feelings of thousands of traders merge into huge psychological tides that move the markets.
People feel that their finances are already taken care of, or are in good shape. While that may be true, everyone can benefit from hiring a financial advisor and having a plan. However, humans tend to procrastinate, often putting things off so long that it becomes too late. Plus, planning encompasses certain life experiences that may be unpleasant. While planning for retirement may be a positive experience, planning for a disability or death might not be. Then there is the financial cost of planning. Professional financial planners charge a fee for their services. All of these factors can be deterrents to planning.
Technical traders who trade price only, so as not to be confused by the news, are simply being lazy in their decision-making process. Price does not form in a vacuum, and a trader who is ignorant of fundamental news will not be able to adjust to or profit from the changing tone of the market. As we'll see later on, indicators that work great in one environment fail miserably in another the key difference between success and failure is understanding which trading regime the market is in and adapting accordingly. Truly great technical traders are always aware of the news backdrop and know how to exploit it with technical tools.
In addition to the above attributes, there must be total honesty and truthfulness. I must know myself and my weaknesses, be emotionally, mentally and physically fit, and ready to take action when needed - without procrastination. I must overcome greed and have an intensity about me that enables me to control not only my emotions, but my thoughts as well. That is a tall order, but it is still not enough. I must also become a top notch manager - planning, directing, organizing, controlling and delegating.
The due diligence process is a long one. It's like a tape measure that shows stuff to do every inch along the way. Sometimes it can seem like it will never end, and so it requires good time management and a great deal of focus. But don't worry, when broken down into bite-sized pieces, the process can be managed successfully. As for organizing the whole process, we recommend that you organize yourself much like a project manager would with project task lists and project deadlines. We guide you in the following sections.
As an analyst hopeful, you'll probably also be asked how you arrived at the decision to pursue investment banking. Have a thoughtful response prepared and make sure your interviewer understands It's not just investment banking, it's this firm that's the compelling draw. One recruiter always asks candidates to explain an important choice they made and how it affected them. In her considerable experience, A true sign of maturity is an ability to analyze yourself and the decisions you have made. Previous work experience is important, and a job that required fairly rigorous time management tells your interviewers you have the stamina and ability to successfully juggle your responsibilities. Focus on the skills involved, not the prestige of the job it's not the job that matters it's what you learned from it. Short-order cooks, for example, know how to handle stress and make a seemingly endless stream of either or decisions. Thus, you can and should discuss these skills in the abstract....
The biggest problem in the investment area is procrastination. People want to do it but don't get around to it, said Rick Ferri of Portfolio Solutions, a vigorous advocate of efficient index investing. He estimates that rebalancing alone can gain an investor 0.2 or more on average per year. We think that may understate this important discipline.
There are situations in which it is possible to reduce stress by structuring and changing behaviour. Organising your life helps to reduce frustration, wasted time and the potential for stress. Research by Lakein (1996) indicates that time management programmes are highly effective in reducing stress in both work and everyday living. There are three main elements of such a programme set goals, make daily to do lists, and schedule the day. Taking time management programmes a step further, there is considerable evidence to demonstrate that the stress experienced by market traders is significantly reduced when they are supported by a comprehensive trading business plan.
Second, it is even more important for you to truly understand that you do not always have to be in the market. There are days you should not trade. For example, avoid trading when you are ill or extremely tired. If your judgment is impaired in any way, have the good sense to pass. Even if you really want to trade, don't. To trade or not to trade is a decision you must consciously make. Never allow someone to bully you into trading or force you into a trade when you are not physically, emotionally, or financially prepared. The great risk you take besides losing money is losing confidence. Be careful to understand why you have chosen not to trade on any given day, because it can lead to procrastination. This in turn can eat away your confidence, leading to inaction. I will talk more about this side of trading in the last chapter.
First, whomever you hire will be more objective about your tax situation than you will be. Second, tax professionals are trained in up-to-date tax codes. They know what they're doing and what the best way to do it is. They also know the best way to save you money on your taxes and whether you should itemize or not. Third, hiring someone will help stem the tendency to procrastinate. Are you one of those people who stand in line at the post office at 11 30 p.m. on
Once the January 15 deadline had passed and the United States and its allies in the Gulf War embarked on the massive bombing of Iraq, the original trade was clearly in losing territory. Moreover, the market was moving down sharply every day, as each day's procrastination resulted in more destruction in Iraq. But how could Hussein give in now when so much had been lost Much like a bewildered trader caught in a steadily deteriorating position, he pinned his hopes on the long shot If only he held on long enough, perhaps fear of casualties would prompt the United States to back down.
In general, you like to receive rewards early and put off unpleasant tasks until later. However, this attitude depends on the circumstances. Consider this example.3 If people are asked on February 1 whether they would prefer to do seven hours of an unpleasant task on April 1 or eight hours of the unpleasant task on April 15, people prefer to do the lesser work on April 1. However, if given the same choice on the morning of April 1, most people decide to delay the work until April 15 even though it means doing more total work. When making decisions involving the present, you often procrastinate, even when it causes you to do more work later.
Scaling in and out can also squander your energy and distract you from playing much bigger elsewhere. Some traders buy twenty-five hundred shares at a time in order to scale into a stock when, in fact, they can buy a bigger position to start with. They also scale out at twenty-five hundred shares at a time and use up time doing this, when they could scale out with much bigger positions and have more time to trade other stocks. You need to tap into the fluidity of trading and manage your time more effectively. There is so much to do on each trade that it doesn't make sense to spend time thinking of eighths. To get back on track, you need to buy upgraded stocks, and larger numbers of them, the master trader advises.
Investing too little over the long term won't help you too much. That's why investing as much as you are comfortable with, and starting as early as you can, are so important. It's so easy to procrastinate, but to do that will mean that you don't value your retirement. You could be retired for 10, 20, or even 30 years of your life. Don't you want to be able to enjoy it as much as possible
Don't get caught up looking for greener pastures somewhere else. You will be surprised what's available in your own backyard. If you're looking elsewhere, you're likely just procrastinating and making excuses. You can choose to make money or you can choose to make excuses, but you can't choose both, so stop procrastinating and choose one
The single, most dangerous roadblock facing every new investor or career changer is procrastination. There is no doubt that many folks, with the best intentions and even a good workable plan, will procrastinate forever. Look around you. How many people are financially independent compared with all of those who just talk about it The answer Very few.
We disagree with some who imply that you can begin your real estate investment career without any cash. Our experience is that the best opportunities and the most options are available to the real estate investors who have both cash and good credit. So don't procrastinate begin working on this step right now.
At this point, we have created an anchor, a reference point, and a thermostatic setting for our performance, and we have completed our visualization of the process in rich and varied details that we repeat with enthusiasm. Now is the time to turn the heat up a bit and notch up our performance to another level. In trading and investing in the market, we have identified the five different levels of performance shown in Figure 11-3. The level you are on determines your results in any endeavor. Each of the levels shown is really a trancelike state. We are aiming for a trance-ending experience. You end the trance you are in by letting go, giving up what you think is true about that level. Otherwise, there is no room to let the new level in. If we sit and struggle for higher performance while living with our two-valued bipolar thinking philosophy, we get into a vicious circle. Polar thinking leads to procrastination, which leads to further polar thinking, which leads to further...
If your portfolio lost more than 40 of its value from the beginning of 2000 through the end of 2002, then you did even worse than the dismal performance of the stock market itself. It hardly matters whether you blew it by being lazy, reckless, or just unlucky after such a giant loss, your portfolio is crying out for help.
Time management manage the evolution of the trade, and shorten it if possible. Time Management To my knowledge, there is no specific tool to manage the time aspect of a trade. The simple idea is that some trading strategies allow you to enter just before an important move in price. In such conditions, it is often better not to wait for the full swing before selling, because the price advance is often stronger during the earlier part of the trade than during the later part. For example, I showed that the Active Boundaries-based strategies are good candidates with which to use time management in the trade, while the supply analysis-based strategies are not. Strategies that use volatility or specific earnings dates are very good candidates for fast profit taking.
If you get overwhelmed by indicators, you'll increase the odds for procrastination, indecision, and overall analysis paralysis. Remember that trading is a game of action, not thought. Too much tinkering and thinking inhibits a trader. Soon after you enter into a position, you'll know whether you're right or wrong. Distractions are a trader's enemy and should be avoided at all costs. Select only a few simple indicators that you understand and believe in.
Read in the Field of Self-Improvement To follow a path of constant improvement, regularly read books in the self-help motivational field. I like the work of Tony Robbins,Wayne Dyer, Les Brown, and Shad Helmstetter. But within the broad field of self-help I include books on health, fitness, time management, and dealing with people. If you prefer, listen to books. You can find nearly all self-enhancement topics on cassette tapes and compact disks. Rather than waste time when you're driving, put those hours to productive use.
In addition to the above attributes, there must be total honesty and truthfulness. I must know myself and my weaknesses, be emotionally, mentally and physically fit, and ready to take action when needed - without procrastination. I must overcome greed and have an intensity about me that enables me to control not only my emotions, but my thoughts as well. As stated previously, that is a tall order, but it is still not enough. I must also become a top notch manager - planning, directing, organizing, controlling, and delegating.
Recent studies have also found that aggressive investors may regret losses (or missed opportunities) from inaction more than losses from action. However, cautious investors may experience anxiety about the possible consequences of making different policy choices. This can lead to procrastination and inaction, even when an investor agrees that a partic
Skills have to be built. Natural talent can be a wonderful asset, but if you lack the needed foundation that comes from a thorough apprenticeship in any career or technical field, sooner or later you will be whipsawed by the forces of good and bad fortune. Building your attitude through discipline and adequate learning is a must. Most people want to reap the rewards right now and procrastinate at developing all the needed skills that will yield those rewards. Practice makes perfect, day after day. Most people just react in the moment and are swung around any way the wind blows while feeling overly powerful and neglecting any kind of preparation. Know your own limitations,
The first step to time management is to give up micromanagement. Do not try to control something you cannot. Concentrating on your winners and a smaller number of stocks will give you maximum capacity to focus on your better trades. To run more money you have to be efficient. Another aspect of time management involves knowing what your day is like in order to determine what time allotments are best for which activities. Ask yourself questions like, Do I get many calls during the day Am I busy in the morning More specifically, how busy am I at 11 30 A.M.
The argument for having a mental stop is that there is a chance the floor traders will gun all resting stops for their personal gain, only to then let the market continue on its natural path. You might feel as though your analysis was correct from the start, but the trade was thwarted by the antics of the pit. In some cases, this might be true. However, the danger lies when you begin to hope that the market will soon turn back in your favor after moving, adjusting or widening your mental stop. As humans, it is part of our nature to procrastinate the implementation of necessary immediate action, when subjected to adverse conditions. We simply hope that the prevailing condition of adversity will go away. This type of mentality can obviously cost us dearly. If you know yourself well enough to determine that a mental stop will turn into an actual market order automatically, this strategy may work for you. However, if you are more likely to start hoping and wishing that the market will...
Procrastination You purposely avoid a challenging task such as making a trading diary or reading literature on how to make a business plan. There is always a good reason why it should be done tomorrow and not today. Sometimes procrastination can be an indication that the task or goal is very important for your own development and is an area you have neglected and have some fear of.
I guess I'm fortunate to have had some good role models when I first started in the business because by nature I tend to procrastinate. If I haven't prepared for the next day, it's easy for me to feel overwhelmed, and I'll tend not to make any trades at all. I've pretty much adopted the routine of two people I worked for in the early 80s. I'm sure I wouldn't be successful today without this discipline.
On the other hand, don't fall into the trap of only working on one deal from start to finish before taking on another good deal because you lack the ability to focus on more than one project. If you have several good deals to choose from, hire a staff, bring on a partner, or find other investors to wholesale deals to as described in Chapter 8. While you don't want to get in over your head, you also don't want to turn away good business. Learn to manage your time and your life so that you can handle a good balance without losing your focus.
Making Time Work With You
Of course we all have the same amount of time in the day. But some people struggle to get even the simplest of tasks completed while others can work a weeks worth of jobs into one single day. Time can be our worst enemy or our closest friend. If you are struggling to find the time to get everything in order, if you want to find a way to accomplish a few more dreams and release a few of those huge tasks that seem to be forever hanging over your head, then making time work for you is the key.