Matthew Kerkhoff, options expert and editor of Dow Theory Letters, continues his 14-part educational...
Watching Tiger Woods Can Help Your Trading
11/24/2009 12:01 am EST
Watching Tiger Woods play golf can be breathtaking and inspiring. Even though I am not much of a golfer myself, I have been dazzled—along with the rest of the world—by his amazing sequence of victories and his professional approach to the game.
So powerful are Tiger’s performances that they have inspired me to think beyond golf to what I do best—trading—and lead me to the discovery of a strong connection between Tiger’s golf game and trading the markets. My discovery? Course management in golf, one of Tiger’s great hidden attributes, is no different from trade management in the markets—one of the keys to successful trading.
For Tiger, course management starts with walking from green to green looking for good angles, wind directions, and danger spots, watching videos of past events, and taking heed of the knowledge of old timers. He does all this careful work before he tees off for the first round, then, during his round, he keeps impeccable hole-by-hole records. Aside from his natural talent, it is this preparedness and attention to detail that sets Tiger apart when he plays in a tournament.
Trading the markets and winning requires the same kind of discipline, I’ve found. The more you prepare as a trader and keep detailed records, the better you become. Just like Tiger, you need to do lots of homework ahead of time. Plan your strategy with care and keep track of every single trade—the good ones and the bad.
The trade management download is a PDF document available by clicking here. I am confident that by using this game plan, your trading and trading results will benefit from this discipline.
As Tiger does in golf, you can “map your course” in the markets by using a game plan. You’ll find it helpful not only to have good, concise records written down of what you bought or sold (when, where, and why) and what you intend to do next in a particular trade. This is a great form of self discipline. Just like Tiger, you’ll be preparing carefully beforehand, planning a strategy out, and using your game plan to learn what works and what doesn’t.
By Adam Hewison, founder, MarketClub.com
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