Tuesday, February 25, 2014

Guest Post: Raphaël Paquet on "Process, Process, Process"

The other day I wrote a blog post titled "How To Achieve Excellence In Anything, Including Trading, By Doing On One Simple Thing". The one simple thing was to "focus on process". I got such a good email response about the blog post that I asked Raphael if I could share it with blog readers. He graciously said yes and so here it is below:

Good day !

Thank you for sharing that interview. The word & concept of "process" reminded me of my very favorite
scene in the movie Moneyball. There's a specific 3-second part that really grabbed my attention, but
really the whole little scene is quite profound if you care to look beyond the surface.

You inspired me to let the keyboard loose a little bit here, hope you enjoy it.

Have a great sunday,
Raphaël Paquet

Here is the clip:

"Everyone wants to attack. Quit trying to attack. Let the game come to you, man. There's no clock on this thing."
Stop forcing trades, quit forcing, start planning. Then let the trades come into your plan. You never NEED to take any one trade NOW.

"I hate losing more than I even want to win. And there's a difference."
Losses are part of trading, so let's define LOSSES here as money lost outside your trading plan. Unplanned losses.
The trades you took that were outside your rules. The widened stops. The cancelled stops. The average downs.
A trader needs to hate those losses more than he desires to win, because wins are part of the process, as are planned losses.

"Don't try to be a hero. Let them make the mistakes (...) Take it, say thank you."
Don't succumb to the hero syndrome (which arises out of emotions). Let other market participants make the mistakes by
over-reacting to events, to volatility, or to lack thereof. When the market gives you a clear entry, take it, say thank you.

And, of course, the payoff, the 3-second gem :

"This is a process. It's a process. It's a process."
And it is. Over every candle, over every trade, over every day.

You can follow Raphaël on Twitter here @eyeonspy and here @TradingPoet


Erika Sanchez said...

Great guest post, we can all relate to!

Erika Sanchez said...

I just had to add, so you can laugh! I should go back and count all my creative processes. But ball park figure, I would have to say I am on 30 right now. Cross your fingers this one is it :)