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We first learned the concept of flexibility when we were children. One of the first instances I can remember of my children exhibiting flexibility was when we ran out of their favorite ice cream, and the only ice cream left in the freezer was my favorite. The desired outcome they wanted was to eat ice cream, so they adapted their beliefs about ice cream, deciding that my flavor would be acceptable. Likewise, a commodity trader will have to be flexible in all aspects of trading in order to be successful. This could be something as obvious and mundane as having a satellite feed go down immediately after placing a trade order, requiring the trader to implement or quickly obtain a backup plan. However, it also could be something more difficult such as having to adopt a new perception of the market when it become obvious that the trader's current perception is erroneous. This could occur, for example, immediately after the trader establishes a long position based upon a five-minute chart, and the market begins to drop. |
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Another example is a trader who uses a certain methodology to determine the trend, then waits for a bullish divergence in the RSI, buying on the open the next day. If the trader's rules for defining a bullish divergence were very rigid, there would be a good chance of missing the move up move because the market action did not meet all the rules of a perfect divergence. However, with a more flexible approach our trader would be able to accept a less than perfect "divergence," and therefore not miss the move. This is not to say that rigid rules should not be used; however, there is a time and place for rigidity and, most important, a time and place for flexibility. In this case the flexibility would come into play when the trader was defining the rules (beliefs) about what price action would construe a bullish divergence. |
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All traders will experience new problems that they do not know how to deal with and feel uncomfortable dealing with. However, once they have overcome a particular problem, they develop a feeling of certainty that they can overcome it again. Unfortunately, there seems to be a constant supply of new problems that enter into the trader's life. As the ability to be flexible increases, the ability to resolve new problems also increases. Successful traders know that flexibility improves their perception of the marketplace and also improves how fast they can react to a new market environment. Flexibility allows successful traders to fight their fear because it forces them to be less rigid in their thinking. They know that as the ability to be flexible increases, their level of resourcefulness will be increased. The amazing thing about flexible thinking is that it enables you to perceive alternative methods to accomplish your goals. |
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As people age, not only does their physical flexibility start to diminish, but their ability to think outside the box as well. Mental flexibility means |
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