The Difference: Mediocrity vs. Greatness

March 2nd, 2010

In Trading, the STATISTICS show that smarts, experience, etc. are not the differentiating factor.
The BEST (most successful guys I know and work with) have winning %’s of less than 50%.. actually, the average is between 45-55% but the point is, basically, winning percentages don’t matter – so they might as well be a random event.

So, what does make a difference?

  • CONVICTION in ideas
  • INTERNAL CONFIDENCE
  • TRUSTING YOURSELF
  • GETTING BIG IN TRADES you believe in
  • LETTING WINNERS RUN
  • CUTTING LOSERS QUICKLY
  • SWITCHING DIRECTIONS QUICKLY

These are many of the factors that allow some people to become monster traders over time. It’s not my opinion, just my observations.

Trade Well,
Dr Doug

Winning Gold When You Take Home the Bronze

February 28th, 2010

You know what Greatness is?

It was watching Canada’s Joannie Rochette, win the Bronze medal in women’s skating in the 2010 Winter Olympics. Actually, it wasn’t just that she won the Bronze, it was that she did this less than a week after her mother’s sudden death.

Joannie was an only child. Her mom was her biggest fan and her closest friend. She could have crumbled. She should have fallen apart. Most people would have. Even elite athletes lose focus and self-destruct from time to time like Dan Jansen did in the 1988 Olympics in Calgary when he was heavily favored to win Gold and tripped during the 500m speed skating race; earlier that day his sister Jane Beres died from leukemia. No one blamed Dan for his failure to deliver his best when it mattered most. How could he have? The Olympics are just a game and his sister’s death was the tragic loss of someone he dearly loved. In a recent interview, Dan acknowledged that it was not until years later that he realized how much his sister’s death had impacted his ability to focus that day. A focus he regained eight years later when he won the Gold medal in the 1000M men’s speed skating at the 1994 Olympics in Lillehammer, Norway.

For Joannie, no one would have blamed her if she was unable to deliver her best over the past few days in Vancouver. She could have under-performed and been completely justified in doing so. But she didn’t. She focused. And she did it under extreme personal stress while competing against a group of skaters that could arguably be considered the greatest talents women’s ice skating has ever seen in Olympic competition at one time. Japan’s Mao Asada, who was the Silver medal winner and the first women in Olympic competition to do a triple axel in her routine. Except Mao didn’t just do one; she did two of them. And, of course Korea’s
“ice queen,” Kim Yu-Na took the gold while setting a new world record score of 150.06.

What does it take to be a champion?
Effort? Yes.
Talent? Of course
Desire? Yes
Passion? Yes
But most of all, as Joannie showed us, it takes mental toughness.
Congratulations Joannie for showing us what winning Gold looks like even when you take home the Bronze.

Dr Doug

Trading Is a Brees

February 16th, 2010

(Watch the Video Online: Market coach Doug Hirschhorn, PhD, advises investors on how to trade like a Super-Bowl-winning QB.)

Last November, three-time Super Bowl winner and legendary quarterback, Tom Brady, described Saints quarterback, Drew Brees, as a player who really loves the game, throws a great ball, is really good mechanically and a great worker.

Last week, we watched Brees hit all four of those characteristics and deliver an A-caliber performance as he led the Saints to their first ever Super Bowl victory. I’ve found the similarities between trading and sports are remarkable, which is why I believe there are some great lessons we can take from Brees and apply to the trading world.

  1. First, he loves the game Just like Brees loves football, great success in trading starts with passion. Passion is what keeps you motivated during the long season and it’s what will keep you pushing through disappointing trades.
  2. He throws a great ball With an 82% pass completion rate in the Super Bowl, his consistency separates him from other great quarterbacks. As a trader, you have to consistently make great trades. Sometimes they’ll make money and sometimes they won’t. All that really matters is that you continue to execute great trades.
  3. Third, Brees is very good mechanically For the trader, this means having a solid process in place—one you can lean on in hard times and exploit in good times. If your mechanics are solid, then, over the course of the season, your results will speak for themselves and set you apart from the pack.
  4. Finally, Brees is a great worker In trading, just like football, there’s no substitute for hard work. Brees didn’t make it to the top of the NFL by taking short cuts or putting in a part-time effort. If you want to be “A+,” you have to put in “A+” effort. That means waking up early and doing your pre-market work. It also means you have to stay on top of market news, map out your game plan and do your daily journals.

Thank you Brees and Brady for this week’s trading lesson.

Think better, invest smarter.

Carving Out Your Niche At Work

February 14th, 2010

As the Career Coach to the Wall Street Elite, I take a unique approach to coaching them to identify their own greatness factor so they can become even more successful.

Carving Out a Niche
I do NOT believe people have strengths or weaknesses (See Principle #2 in 8 Ways to Great). Instead, I believe we all have characteristics and personality traits – the combination of which makes each of us unique, like a personality fingerprint.

Employers/companies are not looking for “Perfect” people; they are looking for people that can add value now and adapt and change as the company/world changes.

I believe if you change your attitude about traditional strengths and weaknesses and position yourself more as the person who understand how your personality traits both help and hurt you in your role, then you have automatically differentiated yourself from your co-workers and being just “another employee.”

By taking this unique approach, it shows you have highly desirable skills like:
• Critical thinking
• Creative engagement
• Problem solving
• Self-awareness
• Resilience and ability to adapt to changing environments

All of these are excellent characteristics to be able to showcase as your assets in the current environment.

How to show it while you are on the job? How to let management know you are working on the skills?
• Ask to work on a special project so you can showcase your skills…..set yourself up for success by offering to do a project you are passionate about and know you will be fully engaged in, even if it means putting in time outside of work

• Another strategy is to ask for regular “check-ins” with your manager or boss. This will give you a chance to showcase the progress you are making while getting corrective feedback from the manager as well.

VERY IMPORTANT: these check-ins should be short (few minutes…every week to two if possible). The point is to let him or her see how you are learning, making mistakes, dealing with setbacks, , adapting, growing and knocking stuff out along the way. Important…keep these check-ins very brief. If he or she wants to ask you questions then stick around longer but let that be their choice.

Dangers

  • Moving yourself to the next level and becoming great is hard. Not just because of the sacrifice and effort but because of the social pressures you will be faced with along the way. Beware, your co-workers may get jealous and think you are kissing butt to get ahead. Do not let this peer pressure deter your efforts. That is their problem, not yours. Are you working to make friends or to be the best you can be in your role?
  • If you want to be different and get ahead of the crowd, then you have to work smarter and know that they are going to want to bring you down. Keep your focus on yourself and know that you are doing this to add value to the business, improve YOUR life and the life for your FAMILY. That is the most important thing there is.

Dr. Doug

Winning In a Traders’ Market

February 13th, 2010

(Watch the Video Online: Market coach Doug Hirschhorn, PhD, advises investors on how to navigate this tricky “traders’ market.”)

As you’ve probably heard by now, we’re in what’s commonly referred to as a “traders market.” This type of market is tricky even for elite traders, which is why I want to share with you four things you need to keep in mind to be profitable.

1. Take a tactical approach Like a surgeon, you have to pay close attention to where you enter and where you exit. One small mistake can cost you big time.
2. Get bigger quicker These types of markets don’t allow traders the luxury of scaling into positions. Rather, you have to know what setup you’re looking for and when it appears, you want to hit it big because it may be the best chance you have to get in on that trade.
3. Use tighter stops In trending markets, you have time to let your trades breath so you don’t get squeezed out of them. Unfortunately, that’s not the case in a “traders market.” In this market, tight stops will keep you in the game longer and right now, the traders making money are the ones who are able to survive the quick moves.
4. Your intuition will show you where to find profits I’m talking about that feeling you get inside when you think now is the right time to get in the trade. If you want to be successful, you need to pay attention to your gut and then, most importantly, follow it.

The biggest mistake a trader can make is to have a great idea and not have the confidence to put it into action. Do not be that guy.

Think better, invest smarter.