Dr. Doug Blog

While Bernie clearly Made-Off with thousands of people’s hard earned money and is now going to be spending the next 150 years in jail (not sure how that works), I think there are some important things to consider.

Brace yourself because what I am about to say may not be so popular to hear (especially for the victims)…but here it goes. We should thank Bernie for reminding us of some key life lessons.

In order to even get our heads around that, people should start by spending less time operating out of anger about Bernie and instead focus their energy on what lessons we have all learned from Bernie so we can transform this horrible event into a positive experience. We cannot change the past…so no point in living in it.

 Thank you Bernie for Reminding Us of These Life Lessons

1) Never put all your eggs in one basket

2) If it sounds too good to be true, then it probably is

3) If someone makes their product or what they do sound like it is reserved for the elite only – and that makes you want it more, then be skeptical as there is more to the story

4) People are way too trusting and way too easy to be manipulated – P.T. Barnum told us that a long time ago (there is a sucker born every minute)

5) Always, always, ask questions especially when things are going well

6) Do your own research (don’t just blindly trust a friends opinion or recommendation – what if they didn’t do their homework either)

7) Take responsibility for all of your personal and financial decisions

Think Better…Live Better,

Dr. Doug

1)      Professionals are Risk Averse

a.       Major players in market are still licking wounds from last years losses. They have made back substantial amounts to get closer to their high water mark and now are starting to see redemptions slow down and even some positive cash flow into the funds. So last thing they want to do is press when the markets are hitting a range and risk giving back some of those profits from Q1 and Q2.

2)      Government Mish Mosh

a.       Lots of meetings, lots of talks on rebuilding, lots of unanswered questions….leads to too much uncertainty for professionals to build an investment theme based on significant catalysts.

3)      The Risk/Reward Profile Stinks

a.       Violent, but low liquidity moves are likely. When fewer players are in the mix, that means less buyers and sellers. This can cause sharp drops in prices on little or no news. For the professional this means that the risk/reward profile for his trades is not favorable and as a result, the best trade is to take a vacation and sit on the sidelines for now.

4)      The Markets are Created by People

a.       People have lives and families. Summer is typical vacation time for many or long weekend trips to summer homes. After the roller coaster ride this market has given us, many people are just exhausted and need some solid Rest and Recuperation time to charge up for the remainder of the year. When less people are trading the markets, then less volume is injected into the markets. Less volume means fewer trades/transactions.

Think Better and Trade Better,

Dr Doug

Think Better and Trade Better

Dr Doug

The #1 reason is because they have a Fear of Re-Injury

I devoted an entire Chapter in my book “The Trading Athlete” to this exact concept.

Traders (and athletes) are so afraid of getting hurt again, that they become paralyzed in their decision making process or they wait for over confirmation on things and miss out on good investments right now. This is very similar to when athlete gets injured – even after they are physically healthy they are afraid to get back in the game (because they don’t want to go through it again. Several popular movies have shown this phenomena (see Top Gun or Days of Thunder)

Here is what you can do to get past your Fear of Re-Injury

Go Small in Your First Few Trades. This helps you rebuild confidence. This is similar to when a hitter is in a slump, the best way to get out of the slump is to just bunt the ball a few times – put the bat on the ball. Keep the process simple until you get some momentum.

Think in Terms of Probabilities. Ask yourself, “What are the odds of a once in a lifetime event happening twice in my life time?” Is it possible? Of course..anything is…but is it PROBABLE (highly likely)? Not it is not and successful investors bet on that.

Live in the Present. The past is the past, so leave it there. Avoid operating out of fear and live in the here and now of the world.

Keep Life in Perspective. People place too much value on their investments – they correlate it with their self esteem. They need to keep it in perspective, it is JUST the market and money… yes, it is important but it is NOT your life or your health.

Trade Well,

Dr Doug

1)      Have a Game Plan

a.       Be specific with what type of job you want (avoid sounding like you just want any job – even if you do)

b.      Map out your strategy: Do what by when?

2)      Create a Video Resume (put on YouTube and burn to DVD)

a.       60-90 seconds

b.      Get video endorsements as well (2 business, 2 personal, 15-20 seconds each)

3)      Know your Competitive Advantage

a.       What makes you unique relative to other qualified people for the job

                                                               i.      Has to be more substantial than “my personality”

                                                             ii.      Is there anything from your job or personal history that makes you an interesting candidate

4)      Do your Research

a.       Before you show up, learn as much as you can about

                                                               i.      The company

                                                             ii.      The job

                                                            iii.      The people you are interviewing with

5)      Knock on the Door

a.       Avoid blasting resumes out and hoping to get a response

b.      Pick 3-5 jobs/places you want to work

c.       Call to find out who the point person is for hiring

d.      Go knock on the door – let them see and meet you

e.       Getting a job in this market is a lot more about selling yourself and a lot less about qualifications/experience

                                                               i.      Why? b/c everyone is “qualified and has experience”

6)      Keep a Journal

a.       Keep track of your experiences

                                                               i.      What companies you met

                                                             ii.      Contact information (emails, phone, mailing address, locations)

                                                            iii.      Who you met, what their job is

                                                           iv.      What questions you were asked

                                                             v.      How you answered

                                                           vi.      What you did well

                                                          vii.      What you did poorly

                                                        viii.      What you would do different next time

                                                           ix.      At end of meeting always ask what the next steps are (are you supposed to contact them are they supposed to contact you, by when?)

7)      Try before you Buy

a.       Consider doing a non-paid internship for a 2-4 weeks

b.      Let’s them see your value add; let’s you decide if you want to work there

      Be Resilient

a.       “No thank you” is one step closer to “We would love to hire you”

Dr Doug

I make my living as a trading coach on Wall Street. Before you let your bias take over and clump me in with thinking that I am part of the problem and not the solution, I want to share with you a perspective from behind the golden laced curtain we have come to think of as Wall Street Greed. What I am going to layout is not intended to defend Wall Street (that is not my job) but rather to give you a new perspective and better understanding of what really goes on in the heads of the Wall Street Elite (and not so elite) when it comes to their bonuses.

Prepare yourself for what I am about to say because it is not going to make sense at first, but it is very true.

You really want to know what is behind the psychology of Wall Street bonuses. Why people on Wall Street feel a sense of entitlement to earning huge sums of money each year even if the bank loses money. Over the years, hearing the conversations and coaching Wall Street talent to even higher levels of performance has taught me that it is not about earning a good or even great living. It is about payback for the sacrifices they have made along the way. 

By sacrifices, I mean the continual stress, long days, political games and volatility of the world markets. Not just some of the time. I am talking 24/7, 365 days a year. If you want to survive and thrive on Wall Street, you have to be willing to put in the hours – sometimes up to 100 or more per week. If you don’t like it, then quit. And even when you are not in the office, you have to be available and ‘on call’ at all times (blackberry’s and email have only added to the demands made on Wall Street talent). After all, the world economy does not stop just because you took vacation with your family to Disney World. Many, many times, I have watched hard working, good people on Wall Street get their vacation time ruined or eliminated because of unexpected events in the markets which required their attention. On Wall Street, disconnecting from the world is not an option – ever - at least not an option if you want to move up the ladder and have a successful career on Wall Street.

I have seen good, smart, well adjusted men and women burn themselves out in a few short years. I have seen some fall prey to substance abuse in their efforts to ‘unwind’ each night from the daily grind on Wall Street. I have seen loving marriages disintegrate over the years because the demands of the Wall Street job overwhelmed the lines of communication and impeded severely on personal time. I have heard clients tell me how they don’t have time for a social life. How they are unable to maintain a social life because of their work schedule. I have listened to clients tell me how they only had dinner with their family one day this week. How they missed their daughters school play because they had to be at a client event out of state. And that five days a week, since the day their kids were born, they have left their home before the kids wake up and most of the time, get home when they are already asleep.

Is this level of sacrifice worth it? In hindsight, most people on Wall Street will answer, “It depends on how well I was bonused at the end of the year.”

So when it comes to getting paid. When it comes to earning a bonus. They feel they have earned it. Not just by their work, effort and intellect but by the personal sacrifices they have made during the course of the year. They realize they cannot turn back the clock. That their kid’s school play is long gone. That their spouse finally had enough after 15 years of being married to Wall Street and the divorce is final. That long planned family vacation is already ruined. In their mind, Wall Street has and continues to torment their life and the very least it can do is pay me and pay me very, very well. Is there a paycheck big enough to make up for that? No. Will it make up for what they have lost? No. But if the bonus is big enough, if there are enough zeros on the check, then it will soften the blow to some extent and at the very least, keep them coming back next year to do it again.

Please don’t judge whether they are right or wrong or whether they are crazy to make this level of personal sacrifice. It is a choice they freely make and at the very least, people should respect the choices other people make. I am not asking or even suggesting that you feel sorry for them or agree with the path they have chosen. They (like the rest of us) get to deal with natural consequences (both good and bad) for the choices they make. I am just hoping to help you understand them a little more before you write them all off as greedy, evil people. Some of them are (just as there are some in every occupation) but most of them are good people just like you. They have simply chosen to make different choices with their life. As an American, that is their right, just as it is yours. Is it worth it? Well, I guess it depends.

Dr Doug

1)      Immerse yourself in a hobby (if you don’t have one, find one)

a.       puzzles, games, reading, building model airplanes…anything

2)      Help someone less fortunate than you

a.       Volunteer at a charity or foodbank or homeless shelter

b.      These types of activities put things in perspective for you

c.       They also give you a feeling of self-worth, value and optimism

3)      Do an act of random kindness for a stranger

a.       I went to a coffee shop in grand central last week and bought a coffee for the person in line behind me.

b.      It cost me, $3. It made me feel good and made them smile

4)      Hang out with positive minded people, not “Debbie Downers”

a.       There is not a single person in this country that is unaware of what we are dealing with and being reminded of it all day long adds to the problem, not the solution

5)      Increase your Education and Learning

a.       Education is power and once you have it, NO ONE can EVER take it from you

6)      Write down your goals for the next few years

a.       See yourself in a better situation economically, professionally and personally

7)      Do not allow yourself to operate out of fear

a.       Fear clouds judgment and causes us to make bad decisions with

                                                               i.      Our time (ie. Worrying about the economy when we should be enjoying our family on the weekend)

                                                             ii.      Our investments (afraid to take advantage of a great investment opportunity)

                                                            iii.      Our careers (afraid to speak up at work because we don’t want to be viewed as a problem employee)

      Eat Better and Exercise

a.       Instead of sitting around feeling miserable and scared, be proactive and get in the best shape of your LIFE. It is totally IN YOUR CONTROL. Just takes discipline.

b.      Lowers stress levels, increase self-confidence

Anyone who says they made it to the top on their own must have started there in the first place.

I just bumped into a former client. He was one of the first clients I ever worked with as a peak performance coach. He is doing great, having success in his life and I wanted to thank him (and the hundreds of others like him) who took the chance and worked with me years ago when I started out my career. The lessons I learned from them served as the foundation of my success and what I am continuing to build right now, which is the Dr Doug brand of peak performance coaching.

So today instead of worrying and wondering when the economy will turn around, I am choosing to give thanks to those who have impacted my life and my career.

Thank you all.

Dr Doug

I am human like the rest of you. I make mistakes and like many of you I beat myself up about it afterwards. I made a substantial one yesterday and am still replaying it in my mind. It distracts me. Takes away from my focus to do more work but more importantly, it consumes my thoughts and tarnishes the precious time I get to spend with my family on the weekend.

Today is my son’s 4^th birthday party. I am going to break my own destructive behavior pattern before he wakes up so I can be fully focused and present to enjoy what is really and truly important in life. My family.

Have you made a business, personal or investment decision recently that you regret? Are you beating yourself up about it? Has it been more than a few hours since you did it? I just did it too and here is what I am doing to get myself out of this funk.

Dr. Doug’s Self Coaching Process

I am thinking back through the details to figure out what triggered inside of me and gave me a clue that I was about to do something I would regret later - I have, unfortunately, done this before so I know exactly what the trigger feels like.

• It is when I get in a frame of mind that I have to do things very quickly and urgently.
• I feel overwhelmed and try to do too much, too fast.
• I get a tight feeling in my chest and my shoulders start to shrug.
• I end up getting to all the things but do not end up being as careful about my decisions. while making them. 

• End result is the benefits I get from doing all the work or phone call or email contacts is far less than the damage I do because I get emotional or lose control of the process on just one of them.

Solutions - What I am doing to solve this for the future.

• Next time I feel this emotional, overwhelming feeling come over me, I am going to force myself to take a 5-10 minute break and walk around outside.
• If when I get back, I am still feeling the sense of urgency, I am going to reach out to my trusted confident to discuss the situation, my thoughts and potential actions.
• I am then going to type up the situation in my self-improvement log, what the situation was, what I did right, what I did wrong and what I am going to do different next time.

I am tired of repeating the same mistake and will modify my behavior so that I can take my game to the next level.

Dr Doug coaching Dr Doug