There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits

Friday, May 11, 2012

Doing without Thinking

There are no shortcuts in trading other than achieving “Automaticity”.This is especially true for  discretionary traders. Once you achieve Automaticity, you can perform the task without thinking.,like driving a car.

How often does it need to be performed before it no longer requires thinking ?

Dr Maxwell Maltz noticed that amputees took, on average, 21 days to adjust to the loss of a limb and he argued that people take 21 days to adjust to any major life changes.But recent research shows that it is not sufficient.

Studies conducted by Dr. Phillippa Lally shows that on an average a plateau in automaticity was reached after 66 days. Although the average was 66 days, there was marked variation in how long habits took to form, anywhere from 18 days up to 254 days

So if you are trying to trade a discretionary system, you may need to trade it at least a minimum  period of 66 days to be proficient in it.


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