Using Worst Case Scenarios to Trade More Profitably
September 9th, 2009Success can be a one time achievement. In other cases, it can be a pattern of behavior that leads to a healthy bank account. Looking into your own personal history to develop successful patterns can be a highly profitable exercise that can help you break out and run with an independent spirit. Using past behavior to analyze successful patterns has been taught in great depth since the formative years in many cultures. Western culture, however, often uses success as a mile marker. Instead of directly indicating which behaviors have produced success, Western society is often more apt to believe in one hit wonders and one shot deals of a lifetime.
Looking over your past behaviors to find successful patterns isn’t quite the same things as delving into your past in order to find a moment of success. Successful patterns are behaviors that we can use over and over again to help achieve success, but don’t necessarily create success by themselves. For instance, an athlete runs the fastest mile of his or her career. That particular day that did a fabulous visualization and changed their morning diet. The combination of these two elements created the fastest time but using just one over the other may or may not produce similar results. The athlete needs to implement both behaviors in order to achieve success. The same applies to trading.
Successful patterns might mean situations like remaining disciplined or creating a strong trading plan. Without the trading plan, the successful patter might not be there, and vice verse with the disciplined trading. You are more than likely to need both behaviors in order to achieve success.
Expectation also plays a fabulous role in developing successful patterns and analyzing whether a successful pattern should be maintained. If you woke up one morning with the expectation of having a fabulous day and you went about your business with the intention of creating a fabulous day, you can implement the successful patterns much more easily and fluidly. However, you can implement successful habits and then sabotage everything because for whatever reason you already decided that the day was awash from the beginning.
We often lead ourselves astray believing that we are creating a scenario of winning when in fact we are just going through the motions and still sabotaging our own ability to win throughout our lives. We do this for any number of reasons, usually boiling down to a fear of failing or a fear of succeeding. When we can really get down and dirty and look into our past behaviors which have brought us to a successful place, it is important to analyze a little more than just the action.
We need to understand how we were feeling that day and why. We need to create the belief that since we already succeeded at something just one time then we can do it again. We need to walk into our offices in the morning fully prepared to pull together a fabulous and wonderful success strategy. We need to evaluate our own thoughts and feelings about success, and then we need to address our issues in order to clear our pathway.
When you combine the expectation of success day in and day out with the creation, analysis, and application of successful behaviors, you end up with a very strong position for success to inevitably follow. Whatever you are preparing to do, whether it is succeed or fail, that is where you can count on ending up.
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