Metrics For Trading Clarity

Zig Ziglar used to say, using the analogy of archery, “You can’t hit a target which you can’t SEE!”

It applies to trading more so than anything I’ve ever seen.  The reason is that trading is such a long, sequential series of decision-making events.

Each and every choice that we, as traders, make has a specific consequence.

Fortunately, as we trade stock, options, futures, forex and commodities, every one of those decisions and resultant consequences can be empirically measured and recorded

Beginning with a trader’s stated goals, continuing through her trading plans and procedures and ending with her final outcomes and evaluations of performance, every step can be measured and placed on an accounting sheet in hard, cold numbers.

The challenge of traders, especially of beginning students, is that they tend to ‘not get around ‘ to such mundane, time-consuming and tedious tasks.

The result, however, is that many don’t really know where they’re at on the road to ‘success.’  Their path is vague, their results are even more vague and it is very difficult for one’s subconscious mind to accept a true ‘arrival’ point.  Things are far too cloudy to ever truly know exactly where they are.

Moral of the story: Set CLARITY as a personal, psychological trading goal in all your activities.