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Sunday, February 7, 2010

The Reason for This Blog

Determination and perseverance are incredible qualities that can take a person well beyond their expected limits. Few people understand this and even less are able to capitalize on this fact. We have all had our successes, but it is our setbacks that reveal true character. I pride myself on enduring failures, learning from them, and continuing on the path towards success. This blog is an extension of that pursuit, focusing on learning and growth in order to achieve my goals.

I have always enjoyed challenging endeavors. I have completed several marathons and distance races because I enjoy the challenge of exceeding my physical goals and stretching my mental boundaries. Anyone who has ever hit "the wall" during a long distance race will understand what I mean. I am an avid practitioner of several martial arts. Martial arts require constant performance evaluation, physical discipline, psychological mastery, strong fundamentals, and patience to wait for the right opportunity for action. Engineering has always appealed to my quantitative mind because I am infatuated with problem solving, whether it is a simple puzzle or modeling the quasilinear viscoelastic behavior of biological tissues. I enjoy the pursuit of self-development and performance as a lifestyle. My personal philosophy can be succinctly described by a blog post written by Dr. Brett Steenbarger of TraderFeed:

"The best performers in any field of endeavor approach their work from a performance vantage point: they are mindful of their development and direct efforts to learn from experience and take charge of their growth. The boxer who conditions in the gym and spars between bouts under the watchful eye of a trainer; the actress who rehearses lines and works with a director to perfect a script; the artist who sketches and refines a vision before committing it to canvas: all have transformed ordinary work into a platform for self-development.

If we think of performance as a lifestyle, then almost any activity can become a platform for growth. If we're developing ourselves physically, how we eat, how we exercise--even how we rest--become performance activities. If we are approaching trading or parenting or a recreational sport as a performance activity, then we are reflecting on our actions in each of these areas, refining what we do and how we do it, and making ourselves ever better as a result.

When performance becomes a lifestyle, we create massive synergies, as the progress in one domain fuels growth in others."

I have a passion for the challenge of trading. Trading combines both remarkable competence and psychological fortitude. It demands a level of innate talent such as quantitative reasoning, probabilistic thinking, correct temperament, and analytical ability. While these qualities are important, exceptional traders are often separated from the rest by their skill, preparation, and self-awareness. You are not born with skill, it must be developed through endless hours of continual study and practice. Also, many have said that success in the market is a function of your preparation while the market is closed. This is because preparation breeds confidence and resilience which are essential in trading to handle the psychological highs and lows. Finally, self-awareness is critical to personal growth. You need to understand your strengths to best identify methods that utilize your skills in the appropriate fashion. You also have to recognize your weaknesses to determine ways of improving performance and adapting mental models. All of these aspects coalesce with the fluid behavior of the market, providing the basis for a uniquely challenging career and life.

This blog will document all of my trading thoughts and activities, serving as a resource for anyone who wishes to follow in my path.

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