Peak performance in investing or trading is not about what you know about the market, its what you know about yourself.Your personality messes up your investment returns. Its not that difficult to develop a sound investment strategy. The difficult part is sticking with that strategy when emotions like fear, anger, greed and jealousy are trying to sabotage you at every turn.Associated with the idea of profiting in the various markets is making decisions based on the vast amount of information available. Information is not knowledge, information that does not provide an actionable insight may be low quality and market information does not contain predictive value. How you make decisions is important Tharp(y) is out there trying to sell his workshops and study material. The thing with this guy is that he knows he doesnt have the ability to outperform in the marketplace so he doesnt directly experience the process of trading. Making money in investments is not a business, but making money by selling information about investments and the various markets is. If the folks who hold the keys to all this great information cant profit from it directly within the stock market, what makes you believe them when they claim you can do it? The wrong answers are always for sale.You rarely hear that ignoring information is an intelligent selection process. If 80 – 95% of the information we pay attention to in our heads is total junk meaning it doesnt mean anything and is repetitive, then
– That experience acts as the reality to which we give our attention.
– Our thoughts are mostly junk concepts that we mistake for reality.
– Exposure to the markets is through vague concepts that add more junk to the mostly junk thoughts already there.And its whats going on in your head that you really trade (your concept of information, your beliefs, emotions, your limited experience), not the markets.And when you notice a belief, you need to understand the following:
1. Where did it come from?
2. What does it get me into?
3. What does it get me out of?
4. Is it useful? If not, then change the belief.
