Monday, May 21, 2012

Dealing with Mistakes--The Musicians Way

Three months ago, I began to learn how to play piano (keyboard). I've been reading the book The Musicians Way, and there is a chapter on dealing with mistakes. I see a lot of useful analogies to trading.

Some key points from the book:
* an error is not a failure
* there is no reason to be ashamed
* errors provide information

Five kinds of errors:
* lapses in focus or concentration
* minor inaccuracies (minor will vary depending on a persons skill level)
* bigger mistakes such as missed cues, omitting sections of music
* technical problems such as stubbing a finger or problems with equipment, sound or power
* memory lapses, perhaps the most feared by performing musicians

For traders, the same three
* a loss is not a failure (losing the entire account is a failure if it means game over).
* there is nothing to be ashamed of (everyone except liars and a few floor scalpers has losses)
* losses give you information

As for types of mistakes:
* lapses in focus or concentration
* minor errors such as missing a small part of a move, or hesitating when your indicators are giving you a strong signal.
* bigger errors such as giving in to emotions, or faulty analysis, or breaking of a person's trading rules.
* technical problems with computers, or perhaps illness or injury at a bad time.
* the most feared for traders might be unexpected news that moves the market against you.

For dealing with errors, in trading or music. Do not disparage yourself. Self talk is very important. If working with a group, do not disparage the group. Give up the idea of perfection. After a big push, such as a live musical performance, or a difficult period or extremely profitable period of trading, a break is a good thing. For musicians recording is an excellent tool. For traders, a trading journal is a method of recording. That's what this blog is, a public trading journal.

For music and trading, preparation, honing your skills, rest, exercise, are all important ingredients to success.

No comments: