DayTradingLife.com

11 Responses

1. traderk

   February 27th, 2009 at 6:00 pm

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   Hi Dowyboy,

   A great download!
   Never seen a trader mind map before.
   Excellent…
   I look forward to your planned updates.

   Regards

   traderk

2. Jure

   July 8th, 2009 at 2:38 pm

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   Thank you for the mind map,,just superb!

3. dowboy

   July 9th, 2009 at 11:35 pm

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   Many Thanks for your kind words Jure.
   Super Trader Mind Map will be constantly updated, with some excel spreadsheets soon to follow etc. Best Subscribe to my feed so you will know when updates have been added.
   Regards: Dow-Bow

4. John Jones

   January 15th, 2010 at 5:22 pm

   4

   Excellent points in the mind map. One spelling/meaning note: “Adverse” vs “Averse”

   A book chapter could be written on every box on this thing! Thanks for your effort!

5. Virtualtrader

   February 17th, 2010 at 6:24 pm

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   Great work! Thanks for all the efforts!

6. santo

   March 19th, 2010 at 7:04 am

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   Great work!! Thank you so much

7. Jason Dekker

   May 2nd, 2010 at 7:41 am

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   Great site! Great blog posts almost across the board, very impressive. The only issue I have with your material is goal setting. Goal setting is in major conflict to almost everything else on your blog and you may not even realize it. I am not here to preach anything to you other than you may want to do a lot more thinking about the concept of goal setting in general as to how it relates to trading, discipline, and living in the now.

   In my experience trading the markets I tend to notice that the market provides opportunities when it provides opportunities and it doesn’t when it doesn’t. The point being, that daily, weekly, monthly, and maybe yearly goals are only obtainable through the opportunities provided.

   As such, if there are no opportunities provided the conscious mind, and perhaps the subconscious mind, tend to “force” bad trades all in the name of achieving an unobtainable goal set in the past. The major issue is that when the goal or goals were set you began to impose your will on the world which in my experience not only doesn’t work, its futile and ends in disaster. How can you or anyone know what’s in store over the next day, week, month, or year and then attempt to take personal responsibility for that???

   Been there done that…not a fun way to live…accepting what the markets and the world have to offer is much more at peace and in harmony with the natural organic laws of the markets and the universe.

   Goal setting in my opinion is all about the future, all about not accepting what is…in the here and now, and wanting things different than the way they are.

   In my experience those are all a recipe for failure, not success. If you really examine goal setting at its core it has about an 80% failure rate. On top of that, many short term goals are in total and complete conflict with long term goals. Real goals, or true goals, are not tangible (they are feelings) and supersede everything else, yet most people have no conscious idea what this means. Conscious goal setting is often incongruent with one’s true goals which is why they are doomed to fail.

   If success is what you seek, goal setting is a piss poor way of achieving it and sends more people to poor house in trading than almost anything I’ve ever seen. I’d start by asking yourself what your definition of success is and where did you come up with that as a definition to begin with?? On top of that show me any evidence from anywhere that says that goals setting actually works. Sure you can find anecdotal stories everywhere and we all have set an achieved goals but mostly we fail.

   This selection bias of only looking at the winners in the process reminds much of why traders lose money. They do something once and it works and then they keep doing it until they have no money left. All losing systems have winning trades and all winning systems have losing trades. The problem is…there are millions of ways to fail and probably only a hundred ways to succeed in trading.

   Sorry for the rant…I enjoy your contributions and hopefully I can stir your thoughts more on this subject…

8. dowboy

   May 3rd, 2010 at 12:55 am

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   Dear Jason,
   Thank you for you comments regarding goals/goal setting (incorporated into my ST Mindmap).

   You say “The only issue I have with your material is goal setting. Goal setting is in major
   conflict to almost everything else on your blog and you may not even realize it.”

   After reading your comments, here is my reply.

   I am not offended by your comments Jason, debate is healthy; but I am completely aware of
   the role/structure that goals and goal setting play within the Super Trader’s Matrix.

   Goals are a key concept that help the Super Trader become,,,,

   We can talk in semantics, IE let’s choose the words ‘focus’ or ‘discipline’ or ‘rules’, ‘vision’
   etc etc. Whilst these words are important individually, and key concepts within a S.T’s make up,
   there is a ‘holarchy’ at work. All these parts naturally make up the whole, that support one another and are not as individual as first envisioned; but each ‘feed’ of each other, support one another, creating this Eco system, a living breathing system at work (The Super Trader’s Matrix) that strives for perfection within the day trading arena.

   So goals and a goal setting framework ultimately cannot be conceived as a individualistic part at work, but more of a essential ‘organ’ that CANNOT be excluded as it is as essential to his system as our heart/liver/kidneys are to our survival.

   Regarding one of your paragraphs Jason;
   ” In my experience trading the markets I tend to notice that the market provides opportunities when it provides opportunities and it doesn’t when it doesn’t. The point being, that daily, weekly, monthly, and maybe yearly goals
   are only obtainable through the opportunities provided.”

   My reply is an agreement to some degree.
   I ask you ; “What is the most important part of trading?”
   Well; my answer is simple; (Though many people might answer differently depending upon there level of understanding)
   Answer: “The process of trading itself.”
   I notice on your website ‘Resources page’ you have mentioned;
   Change Your Thoughts – Change Your Life by Wayne Dyer.

   Well, this leads me to assume you are well read (or have some understanding of the
   mind body connection, and with Mr. Dyer’s material (Similar to Chopra’s,) that time is illusionary, we live in the NOW.
   ALL WE HAVE IS THE NOW.).
   So, to some degree, I believe we agree.
   What’s truly important is what we do in the now, do this, and the future will take care of its self.

   But reading through some of your comments I feel they are slightly misplaced, for example;
   You say Quote; “As such, if there are no opportunities provided the conscious mind, and perhaps the subconscious mind, tend to “force” bad trades all in the name of achieving an unobtainable goal set in the past.”

   Answer: If you “FORCE ” a bad trade this isn’t due to bad use of goals, but to a lack of discipline,
   a completely different entity. Also, the lack of following to a plan springs to mind; and to add another;
   goals are not held in the past, this is misplaced thinking, they are ‘future orientated concepts.’

   Here is an except from a paper I am in the process of writing now regarding goals to give slightly more weight to my reply;
   “By using goals & knowing precisely what you want to achieve, you set in motion a ‘chosen’ positive directional course of action. Applied consistently, this ‘Goal Orientated’ cognizant thought process; one that involves thinking about the future & how to get there (Your Goals; each expressed as positive
   precise statements), YOU become ‘Future’ orientated. This is known as ‘Future Orientation.’ By focusing forward in time you relinquish & help suppress the largest problems ‘ordinary’ day traders face, the paralyzing negative obstacles, those of ‘self limiting beliefs, & Self Limiting Habits (Negative Emotions). It is possible to change these fixed ideas; these ‘genetic & environmental & self created conditioning parasites’ using goals accompanied within the context of a planned commitment & consistent unfailing desire to achieve ‘Your Chosen Goals.’”

   You also mention Quote; “Conscious goal setting is often in-congruent with one’s true goals which is why they are doomed to fail.”
   Answer: “Don’t set goals that are not congruent with your deepest values and belief based system.
   Why would you do this?” I don’t actually see any logic in this statement.

   You also mention, Quote; “Goal setting in my opinion is all about the future, all about not
   accepting what is…in the here and now, and wanting things different than the way they are.”
   Answer: ” You must accept what is, but, importantly goals instigate a strategy to achieve a desired result.

   Jason, I am in the process of writing a paper on goals and goal setting.(Mentioned above)
   I will mention part of this paper now and give a brief 10 reasons why Day Traders should incorporate a goal setting goal orientated approach in their trading;

   Why Do Super Trader’s Use Goals? Top 10 Reasons.

   1. DESIRE: Goal instigates a strategy to achieve a desired result. ‘Goals Come With Desire.’
   With desire come goals. The greater your ‘Goal’s Desire,’ the easier it will be to change your old
   conditioning. Alter your old conditioning & you change your old habits. CHANGE YOUR HABITS, CHANGE YOUR RESULTS! Desire is VERY Important.

   2. VISION: They say success is a 2 part process, with part 1 being, ‘You Must Know Exactly What You Want.’
   Goals give you the trading vehicle to envision EXACTLY what you want! As the great Stephen Covey So eloquently puts it;
   “Begin With The End In Mind.”

   3. PERCEPTION: By merely having ‘Goals,’ you instigate a ‘Comparative’ mode, so you can easily evaluate & make rational ‘Value’ judgments regarding your ‘PROCESS & OUTCOME Goals.’
   The principle of perception is based on differences. So, what do we need to be able to compare. So, start with a goal! All Super Traders quantify & quality their performance. So all ST’s use goals!
   “What’s measured improves!” Peter Drucker

   4. PURPOSE: Goals give you a sense of purpose; thereby directing one’s attention to ‘grow one’s awareness; conscious awareness. This relates among other things to the ‘Conscious Competence Learning Model.’

   5. FEEDBACK: Trading involves learning. Learning & improving partly involves repetition which needs considerable feedback. A ‘Super Trader’s Goal System’ always incorporates a ‘Feedback Loop.’ You need feedback in order to improve. So, You Need Goals!

   6. FOCUS: Goals are closely linked to ‘FOCUS.’ What is the most important part in a Super Trader’s Structure, his structure of excellence? ‘THE PROCESS!’ Goals help you to direction your focus (WITH CLARITY) on BEING! Being? Being The Process Of Trading.’

   7. ACCOUNTABILITY: Having goals & a goal process makes you purposeful, thoughtful rational & systematic.
   This transcends into the realm of ‘Personal Accountability’ having what is known as an ‘Internal Locus Of Control.’

   8. INTENTION: We live in reality, yet it is a filtered ‘PERCEIVED REALITY.’ Goals for the Super Trader are used as a lens, shifting one’s ‘Frame Of Reference’ (His Thinking & Awareness) to envision new
   opportunities, guiding ones’ decisions within a structured ‘INTENTIONAL’ framework via conscious choice.
   NOTE: Important word, Choice. There is age old question “Are Traders Born Or Made?”
   ANSWER: Neither! We are all products of choice!

   9. HABITS FORMING: Goals are part of a ST’s consciously chosen system that helps ‘Reshape’ old negative self-limiting beliefs & habits that could be buried deep within his subconscious. Thus goals aid in the creation & formation of new habits. WHAT ARE HABITS? (WHEN THE BODY BECOMES THE MIND!)

   10. CHANGE: Goals help you change. It is said (via quantum law) that the environment is an extension of
   the mind. So importantly; if the World is shaped by our thoughts, then intentionally shaping our destiny via goals & goal setting we will ultimately reshape our conditions & our environment, thus changing the events, circumstances & outcomes.
   NEVER UNDERESTIMATE THE TRUE POWER OF GOALS!

   To summarize Jason,
   You say “How can you or anyone know what’s in store over the next day, week, month, or year and then attempt to take personal responsibility for that???

   In the above 10 reasons there is 1 that is so so important to the day trader, trading in ‘the now’,
   trading at the highest level one can, (which ultimately leads to focusing purely on ‘the process’ of trading’) that said, reason 8 is key.
   “Goals for the Super Trader are used as a lens, shifting one’s ‘Frame Of Reference’ (His Thinking & Awareness) to envision new opportunities, guiding ones’ decisions within a structured ‘INTENTIONAL’ framework via conscious choice.

   So Jason, via goals you will see opportunities that you just wouldn’t be looking for if you didn’t instigate a goal orientated approach.
   It’s a bit like when you buy a brand new car, drive it for a few days, but instantly you notice all these cars exactly the same as your new car on the road. they always were there, but you just weren’t aware of them.
   Opportunities to improve are always present for the Super Trader, and using a structured, rational and systematic approach via goal setting instigates a model that will shift your awareness to seek new opportunities that one wouldn’t even dream of if a goal approach wasn’t part of the mix.
   THIS IS WHY GOALS ARE PART OF THE SUPER TRADER’S MATRIX.

   I leave you with a quote Jason by Peter Drucker (The grandfather of business management)
   “Objectives are not fate; they are direction. They are not commands; they are commitments. They do not determine the future; they are means to mobilize the resources and energies of the business for the making of the future.

   I hope you might reconsider a goal approach in your trading strategy Jason.
   I haven’t gone into great detail or given trade examples etc, but I hope the above comments might make you consider that goals can and do play an important role in trading at the highest level.
   Best regards
   Dow-Boy.

9. Brad

   May 5th, 2010 at 1:17 am

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   Outstanding material DowBoy. Not sure if you’ve read any of Marcus Buckingham’s work on Strengths, but his philosophy is very similar to yours. You can’t learn success by simply studying failure. Keep up the great work. Lastly, how did you create the Super Trader Mind Map picture? Is it a series of mini mind maps merged in Photoshop or something completely diferent? I’m keen to adapt your concept to another topic. Regards, Brad

10. dowboy

    May 5th, 2010 at 11:21 pm

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    Many thanks for your comments Brad. Yes, how Marcus explains and rationalizes how we as humans tend to be drawn to study subjects in a way that initiates a need to actually focus more on the negative and opposite attributes of the very subject matter we wish to improve on!
    This is a major stumbling block that most people face when learning new skills.

    We are in an information age when we feel the need to know more and more, yet it’s not the volume of information that is important, it’s where we chose to focus and what we focus on that is important.

    A very good video relative to this point by Marcus is here:
    http://www.youtube.com/watch?v=4lNC6–JuoY
    IE,,, “You don’t need to study depression to learn about joy.”
    The above video I like for the following quotes;
    “If you want good we should study bad and invert it?” Actually,,,
    “If you study bad and invert it you get,,,not bad!”

    As to my “Super Trader Mind Map.” I have created this using some mindmapping software called, Mindjet MindManager,
    http://www.mindjet.com
    This is an excellent piece of software for mindmapping. I will include a mindjet version of my ST Mind Map soon which will make this a lot more interactive.

    Again, many thanks for your comments.
    I hope to publish some more material very shortly.
    Best regards;
    Dow-Boy

11. expekt

    May 10th, 2010 at 7:34 pm

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    It’s always pleasure to read your content, will back here soon