There are a number of ways to trader can go about gaining self-knowledge. I want to describe four important sources in this article: assessment instruments, reflective journals, traders mastermind and a trading coach. Each of these can offer important insights into your trading practice, and I recommend that traders use each of these for their self-development.
Assessment instruments: while there are many different kinds of pseudoscientific instruments out there, a couple strongly scientific instruments come to mind. The Myers-Briggs type indicator is one of the most well-known instruments self evaluated personality profiles. While there are many who dispute its claims to scientific knowledge, there is no doubt that it offers powerful insights into preferences and learning styles even if treated as a metaphorical tool. Another odd other instrument that I am fond of using is the learning styles indicator which I find particularly useful since I consider trading the markets to be an educational process of focused inquiry. Appreciating the cold learning style model will give you many useful points of departure for self discovery.
Reflective journals: I strongly recommend every trader maintain a comprehensive trade journal that can be used as evidence were behavior during the act of trading. There’s nothing more powerful than physical evidence in establishing exactly what it is that you do as a trader as opposed to what you believe you do or think you do or say you do. A reflective journal can be short annotations of standard trades patterns or can be expanded to include recordings of how you feel, what you see, with letter grades and editorial comments included. Journals offer double loop learning, which is learning about the trade as well as learning about yourself in the trade.
Traders mastermind: by having a trading tribe of like-minded practitioners who are open to observation and giving quality feedback you will be able to triangulate your behavior and performance through the eyes of respected others. In addition to being 80 high-quality social support network, you want access to excellent feedback. It is good for you to give feedback to others and not just received. That is being a good citizen.
Trading coach: this is a powerful text me for supercharging your performance by putting yourself under the watchful eyes of a coach who can help you focus on the important elements of planning, preparation and execution of your trading plan. A good coach will help us see ourselves clearly and move us to those areas where he modes need improvement. If Tiger Woods and Michael Jordan pay money for personal coaches, there must be something to it.
By incorporating some or all of these sources of insight a trader can dramatically improve his personal performance.