26 Sep Untangling That Spaghetti
#tradingforex #forex #FX #daytrading #tradinglifestyle #daytraderlife
For those that have been following my process know that I’ve recently had a bad month and half. In order to create order in the chaos that was my brain I set out to focus on improvement. In this process I had to categorize what I did right and wrong. What do I know and what do I still need to work at. What it boils down to: untangling the spaghetti that had taken occupancy of where my brain used to be. Here I’ll take you through my thought process on how I went about doing this.
Get Back to Basics
First I had to understand what was going on and why I wasn’t functioning well. I’ve embarrassingly documented all of that in previous posts so won’t be getting into that here again. When taking a lot of difficult concepts all at once you risk to not fully understand any of them. Hence you need to take the time to fully grasp one concept and then move on to the next. Now, I am a quick-learner. But dealing with intricate unknown concepts is already hard to do when functioning well. So a point came to make a decision. I decided to take charge: Organize the knowledge I had taken.
My Preferred Spaghetti Untangling Tools
- OneNote for collecting pieces of information here and there in a somewhat categorized format.
- SimpleMind, mind mapping software. With this I can visually represent bits and pieces of information and at the same time connect when there is an overlap with other concepts.
- Techsmith Capture for taking screenshots and notes.
Collecting of data
Now, not everyone learns in the same way. So my way might not be for you. My approach seems more scattered to most but it all makes sense in my head. I have always been doing a million things at once that seem unrelated to some. But for me it just works like this. Being in the mentorship program I have access to a portal which is web-based. Information that I gather there or anywhere else on the internet I copy paste into OneNote. What this does next to taking the note is that it provides a link to the source as well. You can do this from any web-based source. This way I can go back to the page and read any other relevant context if needed. Having collected bits and pieces of information that I already generally categorized, I now have a collection of knowledge if you will.
This is where mind mapping comes into play. You might use some other method that is okay. I like to have a visual representation of the ‘mess’ in my head. So that then I can move things around. Place them under a different category. Combine or link categories. I start off by creating a Central Theme. In this case “Untangled Spaghetti” 🙂 Underneath I create subsets like price action, order flow, trading locations, entry/exit methods etc. Which then gets filled up with its own subset of relevant data (that I gather from OneNote) until they become too big (or cluttered) and I separate them from the ‘main’ central theme to become its own central theme (little central theme growing up so quick). And tadaaa…. You now have a visual representation of your knowledge base. Whenever I get a new piece of information I add it to my mind maps and done.
Now that’s all good and dandy Sir but uhm… we done?
Not quite. Obviously, with learning any difficult concept, you need to put the knowledge to practice and create new neural networks. First part for me is to get a conscious understanding of the material. Then go out and use the material to gain experience but above all confidence. Another way for me to reaffirm the learned material is by writing my Daily Report Cards (DRC). In this I judge myself on if I followed my process regardless of if I made any money. Money is secondary, process is all. I’m not going to explain here how exactly I do my DRCs because they are pretty straight forward and you can find all of mine here for free. To accompany the DRC I take a screenshot (which I already have from each trade I take) and I go over what I did right. Again representing it visually. Reaffirming the knowledge I have. But just as important I include what I did wrong. Here is an example of all the intricate details I include in my screenshots:
Hope you can understand the humor 🙂 Lastly, I track the conditions of my DRC in what I call a tracking sheet. Was I right in my hypothesis? Was there an opportunity and did I take the trade? Good stuff like that. So that at the end of each month I have statistics on all the other relevant stuff that in the end hopefully transpire into a positive P&L. And if not… you have a pretty good idea on where you still need work.
If you have made it all the way through… Here is a FREE LAMBO!!!
Sorry no Lambo. Nonetheless, I greatly appreciate your interest in my journey. I’m sure it is not an easy read as I tend to get long-winded. If you have any comments or suggestions feel free to let me know. Even though I do like writing I don’t consider myself to be much of a writer. I rather talk or play online games 🙂 If you haven’t already please check out my Twitter or instagram