Do a deep dive

 

If you want to trade a particular setup then do a deep dive on that particular setup on past 1 to 3 years market data.

Look at at least 1000 to 3000 past examples of that setup and note down your observation. From that study create a pattern book.

When you do deep dive look for variation of the setup. Same setup has many variations. Note that down.

Study the range of moves the setup makes. Note what happened before start of the setup. Note what happened during the setup progression. Not what happens when the setup ends. Note the number of days of market moves. Note the magnitude of the moves.

When you do a deep dive like this on 1000 to 5000 setup in short time period of days or weeks you understand this setup and it becomes part of your way of thinking as you have invested significant brain energy in that activity. As a result you become good st identifying it in real time.

Psychologists have word for it called Mastery Experience. That experience changes your beliefs about that particular ability to find that setup.

Once you do a deep dive and you master a pattern next challenge is to execute it in real market environment. This requires innovation and process flows. You try one way of doing it , if that does not work you try another way till you find way to do it. Process hacking is how humans develop ways to make things work.

There is another way you can speed up this process. You watch others do it and then mimic their actions. Human learn many processes and gain knowledge this way. Procedural knowledge is primarily gained this way. The psychologists call that vicarious learning . This can speed up learning very quickly. This is why humans like watching how to videos. Many things we learn this way in single trial.

While you are doing deep dive or attempting to trade this particular setup , the social surrounding and messages you get is important. If while attempting this say your boyfriend keeps telling you , you will never make money trading or it takes years to become good at it then you will be influenced by that social conditioning. As against that you are in an environment where you see other doing it successfully and encouraging you then you put in more effort and try to make it work. Psychologists call it social conditioning.

To do a deep dive like this you need to be in healthy state. If you are suffering from a bad cold on a particular day you may not be able to do this activity. That is called psychologists somatic effect. Our performance depends on our physical and mental well being.

These are proven techniques to speed up learning skills and especially Procedural skills.

So if you want to dramatically improve you trading do a deep dive.