Tuesday, September 04, 2007

Too Much Analysis???

Let me say that for some reason when I am making money and the markets are working in my favour I seldom keep up to date with my daily journal. However, when I am in the headlights or I am in two minds about a position I write like someone possessed.

It is at these times (going through one since last week) where I cannot stop analyzing every emotion and trying to define the meaning of life. Is this an advantage or disadvantage?

I think to myself Hedge Fund Manager XY, YZ & AB are real pro's and they never seem phased or 'waste' too much time getting deep and worrying about the stuff I contemplate. They seem to just get on with the job. Am I a sabotaging my chances with all these thoughts.

Let me try and answer this myself.

Firstly, I am not just your average guy, I am an intellectual, I ask questions and I have PhD in Economics to show for it.

Secondly, I am extremely competitive and driven to succeed. So part of all the analysis is to help formulate a strategy to beat the next guy or lets just call it the market.

Thirdly, I am someone committed to being a better person, and part of that commitment is better understanding all the things that make me tick, under all circumstances.

Fourthly, I am human and part of being human is finding fault in the things we do, so over analyzing is just part of being human.

Fifthly, the guy who is a pro definitely analyzes his situation and is honest with his mistakes, but the pro doesn’t dwell on his mistakes he gets on with the show.

Lastly, I have chosen a style that takes time to manifest. I am a medium to long term value trader therefore my calls are almost always early and I have to endure periods of stormy seas. Yes I could block all self analysis out and hope that my original work is what will save the day but that isn't necessarily the answer. In short I have chosen a style that requires patience and yes, analysis, so that when I make mistakes I can learn from them and hopefully never do them in the future. Also the greatest tool in my trading style is my brain and its ability to track my emotions. If I never kept a detailed analysis of my thoughts I would have no means to monitor and improve myself.

AAHHHH that feels better.

Mickson

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