My job as a coach is to find talented people and be sure they understand and adhere to the fundamentals. However, what's a talented trader? Before they will be personally coached by me, what do I look for in people? Last weeks, I spoke about one of those traits, commnt. This week, we'll talk that I find equally as valuable, personal responsibility.

Why is personal responsibility so important? Well, one of my beliefs is that you're the most important factor in your own trading. It's not you system since YOU both create and implement your system. It's not your money management, because YOU must execute your money management in order to create results to fulfill objectives. And it's not the market, since you don't really trade the market, YOU exchange YOUR BELIEFS about the market.

The net result is that YOU PRODUCE THE RESULTS YOU GET AS A TRADER. And when you realize that, then you see that changes must be made by you if you would like outcomes. You have to create the changes.

At some of my workshops I perform a simulated trading match. In that game everybody receives the very same transactions, and their sole decision is how much to bet (so it's really a sport about position sizing). Since everybody receives the very same transactions, the only two factors really operating from the sport are plogy that is personal and position sizing. Yet in a match with a positive anticipation, with 100 people playing with the sport, I will typically see 1/3 of the room go bankrupt, another third of the area lose money, and the third will probably create nice profits.

Typically I ask people in the audience to pull out marbles, representing the transactions, and I will ask the exact same individual to keep pulling transactions (i.e., marbles) until he/she receives a winner. That means that if there's a long losing streak (and there is) that it will be connected with whoever pulled the marbles from the bag for this streak. I can then ask the audience, How a lot of you feel you went bankrupt due to Bill? -- while pointing towards the individual who pulled the losing streak. And surprisingly, quite some of those bankrupt people will raise their hands. The problem with this premise is that nearly every simulated trading match will have a very long losing streak (i.e., it's designed that way) and it is going to always be associated with the individual who pulled that series. Therefore, if you believe that person was accountable, you make the exact same mistake over and over again. You'll go bankrupt in games and it will always be Bill's fault.

Furthermore, there are lots of possible answers to why did you lose money in the sport? They include:
It was the fault of the man who pulled all the losing marbles (trades) This is a stupid game and it's doesn't signify real trading. Ithas nothing to do with me personally and's chance that is random. I didn't have a system I am a stupid idiot. All of those answers won't help you enhance and are explanations. There's only one response that can allow you to enhance which is:

I risked a lot of money on a range of those trades and that is why I lost money or went bankrupt.

When you realize that, then you can repair the problem. When you devote any of those other explanations, then you compound the problem and will repeat the identical mistake over and over again.

Are you starting to understand why taking personal responsibility for your transactions is so vital?

When you look at your trading results and state, I created that result, then you are responsible for the process. And if you do not like the result, you can begin to search for the mistakes that you created. And then you can make changes and get better results when you discover the ones that produced your results. THAT IS WHY PERSONAL RESPONSBILITY IS SO IMPORTANT and why I search for it in all of my superb traders.

Do you like the results you've produced as a trader in 2005? If not, then what errors did you make and how can you correct them. And you might ask yourself
Do I have a business plan to guide my trading? Do I have a worst case contingency plan? Do I have favorable expectancy systems that are well tested with this market climate that I can trade. Do I have something that will work if the markets change? Do I work on myself as the core of my trading results? If you answered No to any one of those questions, then you have some actual clues about why you got results you did not like in 2005. And those, by the way, are just some of the questions that you could ask yourself.

https://forexintuitive.com/discussio...-attached.html

Van K. Tharp, Ph.D..
http://www.tradingeduion.com/default.asp?Code=TE_ACF