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Have you heard of the six P’s?

By January 16, 2014November 15th, 2023Active Investor Education, Uncategorized

After spending over 2 decades researching and investing in the share market, and educating and coaching people on the benefits of profitable mechanical trading, I’ve come to the conclusion that super successful traders and investors have the 6 P’s:

Preparation – they gain a detailed understanding of the environment in which they will execute. They “roll up their sleeves” and “get their hands dirty” doing the necessary research to determine the edge with which to execute. They spend their time “on the range” or “in the nets” identifying, acquiring and honing the necessary skills and trained eye required to be successful. They know that preparation will be an ongoing part of their journey. Their preparation exudes commitment.

Planning – using the outcomes of their preparation, they compile a specific plan for how they will engage their chosen environment, the financial markets. They have a plan that determines exactly what and when they will buy, how much they will buy and when they will sell to take profits on winning trades or to protect capital on losing trades. Their plan exudes clarity.

Process – they have a clearly defined process that they follow every day to uncover new trades, manage their current open positions within their portfolio and to exit trades for a profit or loss should the need arise. This clearly defined process is a result of the rules defined in the planning process that were, in turn, determined from their preparation. Their process exudes certainty.

Perspective – from their preparation they have a big picture, long term perspective of how their edge will perform whilst simultaneously executing their process and plan with attention to micro exactness. Due to perspective, they fully comprehend the risks and context of engaging over small samples in the context of their big picture perspective. Their perspective produces confidence.

Perseverance – to successfully navigate an environment of such uncertainty as the financial markets, they embrace the process as an opportunity for personal growth, and the acquisition and honing of skills. No one likes to go through difficulties, but it is through executing under pressure and adversity that their beliefs and character are revealed. Perseverance to keep on keeping on and keep their nerve when all about them are losing theirs, requires belief in their preparation, edge, process and plan. Their perseverance exudes courage.

Psychology– they understand who they are and where and how they belong in the market. They have no emotional attachment to their market positions and are at peace with any outcome regardless of the size of profit or loss because they know that these outcomes are a natural part of their edge. They are definite and disciplined in their trading and investing decisions and execute their planned processes without hesitation or reservation irrespective of the pressure of the current market conditions. They can do this because they know that they will have a certain outcome over a large sample of events regardless of what happens over small samples of uncertain events. They are able to deal with all the ups and downs of the markets mentally and emotionally because they have preparation, a plan, a process, perspective and perseverance. Their mindset exudes consistency.

Our clients can achieve the 6 P’s with the help of SPA3 – Preparation, Planning, Process, Perspective, Perseverance and Psychology.

With the SPA3 system, nearly all of the Preparation has been done for you, especially the draining and hugely time consuming research. You just need to have a basic understanding of the stock market and a broker platform (we can give you directions here too) to complete the Preparation.

Most of the trading Plan has been prepared for you with SPA3. All you need to do is apply your customised personal requirements.

SPA3 provides the trading Process complete with the necessary bespoke written software tools to make the Process productive and efficient.

Birds-eye view Perspective comes from detailed research and massive simulation effort that shows performance over many years so that the upper and lower boundaries can be clearly comprehended and visualised.

Perseverance comes from belief in the edge determined during preparation and from the belief that the big picture perspective determined during simulation can and will play out over a large sample of events regardless of what conditions are thrown at the edge.

The 5 P’s above lend a huge hand to getting ones mindset aligned with executing in the markets and laying the strong foundation for one’s trading Psychology continuing to improve and grow.

If you want to develop and use the 6 P’s to achieve success in the share market then click here and register for a demonstration of SPA3.

One Comment

  • Kym Heidenreich says:

    Very good lot of 6 P’s to follow Gary, with a lot more to think about than the previous 6 P’s that I have heard, mostly to do with Preparation.

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