Process orientation allows ordinary person to become a profitable trader | stockbee


Process orientation allows ordinary person to become a profitable trader

Some people have special trading talent which is difficult to replicate because lot of time it is instinct.

But if you do not have that kind of instinctive talent , you can still make lots of money by becoming process oriented.
Process orientation is for anyone who wants to develop as a trader. By breaking down a setup in to series of steps even a person with no special talent can trade.
Process orientation makes it easy for your brain to do complex task. It helps you develop a special kind of memory called procedural memory.
Procedural memory is memory of how to do things. Once procedural memory is learned it becomes part of you and you can do the process without thinking .
Procedural memory allows you to automate your ability to do complex task without much thinking.
Driving is best example of procedural memory. It is in the beginning a complex skill requiring , hand, leg, eyes, ears and brain (see a learning driver struggle to understand this) , but once you learn it , it becomes part of you.
So much so that I see drivers applying makeup while driving , texting , eating .
Same way you want to become an expert driver in trading a setup. In order to reach that level, you need to follow a process and practice a lot. Once you do that you can effortlessly trade. 
Research on procedural memory has shown that practice plays an important role in developing it.
If you want to trade say Anticipation setup discussed here or  momentum burst setup or any other setup, extensive amount of developing procedural memory is what you need to focus on.
Anyone can learn driving , same way anyone can learn trading once they become process oriented. 

Procedural memory deals with skills

You develop skills only if you develop unconscious memory for doing it.
For a skilled dancer procedural memory involves unconsciously coordinating hands, legs, and body to create graceful fluid motion.For a skilled ice skating it is similar thing. Same is case for gymnast.These professionals spend years perfecting their skill under close supervision and coaching .
As against that everyday you see people with very little trading skills or those who have not spent serious times perfecting a setup want to instantly become great traders. I get lots of emails daily like that .
Procedural memories are typically acquired through repetition and practice. When you do that your brain undergoes some changes and automatic behaviour sequence memory is formed. That memory gets so deeply embedded in our brain that we are no longer aware of them.
For a swing trader it is same thing. For a given setup he or she develop procedural memory which kicks in as soon as that setup shows up.
For a pullback swing trader it is same thing. When they see a pullback setup he or she has developed procedural memory which kicks in as soon as that setup shows up.
If you want to develop as a trader start by developing a procedural memory for

Just one setup

Develop procedural memory for momentum burst
Develop procedural memory for Episodic Pivots
Develop procedural memory for pullbacks

That involves some serious practice, thinking and sacrifice....
Sacrifice is required to not flirt from idea to idea and setup to setup and trade to trade. You have to narrow your focus to single setup or single entry technique or single or single exit technique.
Trying to do too many things without developing sufficient skills can lead to confusion and wasted efforts,
Focus on just few things and then develop procedural memory for it before moving to other things.

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