Bouncebackability!

Posted: August 18, 2011 in Uncategorized

Bouncebackability – what a word! It just trips off the tongue beautifully but it’s the meaning of it for me that is most impactful.

This word was invented a few years ago by a football manager called Ian Dowie who ingeniously used it to describe the tenaciousness and fighting spirit of a football team who had come back strongly after a difficult period. From reviewing my own past achievements and those of others it became clear to me that a strong dose of this is essential all aspects of life.

Trading is a great example of this essential need for bouncebackability. I am often asked what makes a great trader and I will always explain strongly and passionately that the key differentiator between a successful trader and a unsuccessful trader is THE TRADER. The markets will continuously try to catch you out, to test your mental and emotional metal to see if you can stomach a losing trade/s and come back strongly from it. This is why so many traders, ignorant to the importance of psychology in trading, struggle to stick to the rules of their strategy which WILL make them profitable over time.

As humans, we suffer from recency bias, where in trading we pay most attention to the most recent trades. After a string of losing trades, or even simply a single losing trade I see many traders let this greatly impact their future trades through breaking the rules that they know they must adhere to. We have all done this, me certainly included however it’s how we work on ourselves to overcome this challenge which is key.

The very best traders I know, take no setback after a tough time in the market. They accept feedback from the markets as a blessing and huge learning opportunity to become a better trader in the future. They have a strong BOUNCEBACKABILITY. They understand and appreciate that losing is part of winning in trading. Follow the rules of a strategy you know has worked well in the past, and you will make regular consistent returns. React with anger, fear or distress after a tough trading period and be sure to give back you hard earned returns to the market.

I am no stranger to hard times in the markets. I have had to train myself over the past 4 years to bounceback after a difficult trading period. I used to blame all external circumstances for my below average results when really it was ME who was holding me back from achieving the results I wanted. When I taught myself to take a positive from any trading outcome I never gave myself the opportunity to feel let down, dejected and flat. I said there are 3 outcomes:

1. I hit my target for a trade – POSITIVE

2. A trade goes against me but I learn a valuable lesson to improve me as a trader – POSITIVE

3. A trade goes against me but I have followed my rules and this will make me profitable over the long term – POSITIVE

This re trained and re wired my mindset to ensure that I conditioned myself to ‘bounceback’. This has helped me take a more rounded, long term view to my trading which will help hugely with my fund management. I am able to be the trader (and person) I am today because of past mistakes which I learned from. I am thankful for making these mistakes because it taught me everything I needed to know to become a better trader and all round person.

Bouncebackability isn’t just key in trading however it covers all aspects of life. If you take a closer look at some of the most successful people you know, it wasn’t all plain sailing for them on the road to their ultimate success. They have become the people they are now having benefited from all the feedback life has provided them with.

Inspiring characters such as Peter Jones, the current serial entrepreneur, multimillionaire, who came back from bankruptcy to be who he is today. Lance Armstrong, beat cancer then came back to win The Tour de France 6 times afterward. Incredible achievements from people with true bouncebackability.

I look back again at my journey from complete amateur to now coach and money manager and I could have let many periods of adverse conditions push me off my path to my goals. I didn’t, I simply bounced back stronger than before, even more determined than before, armed with greater experience to see me through.

So ask yourself how strong is your bouncebackability and how can you think differently to challenging times? As funny as the word sounds, it is a characteristic which can help push you into the top echelon of a variety of areas whether that is trading, business, keeping fit etc…we all need a strong element of this in our lives.

Wishing you well in your own future pursuits.

Tom

p.s. Many people have wanted to be kept informed of future posts so please do add me on skype tom.w.franklin is my skype address…I will pop a note on my status to keep you up to date

Advertisements
Comments
  1. […] show your determination and fighting spirit to comeback strongly to be a winner! You need to show bouncebackability! If you really want to know the meaning of this word and how to apply to different aspects of life, […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s