What is the difference between Process-Driven & Result-Driven traders?

There are two types of traders inside everyone.

First type of trader is an Architect, who is disciplined and process-driven.

·         The architect is focused on process and perfecting the process.

·         The architect trusts that the results will come if he gets the process right.

·         He views his Mistakes as a teacher who is constantly providing valuable lessons in a continuous feedback loop.

·         When the architect makes a mistake, he notes it down and promises himself that he won’t make the same mistake again.

·         He is always optimistic and looks forward to the day when the results he desired are achieved.

·         But he isn’t bothered too much by current results because the process is constantly being improved and slowly taking him to his dream.

Second Type of trader is like a rash driver.

·         He is Ego-driven and is fixated on results.

·         If the results don’t come right away, he gets discouraged.

·         If a mistake is made, the rash driver beats up on himself or looks for someone or something else to blame.

·         If a strategy doesn’t produce winning results quickly or it goes through a difficult period, the rash driver tosses it aside and looks for a new strategy, never really committing to the process.

·         A rash driver, has tons of excuses and rarely takes ownership of the outcome—and as a result, never builds anything lasting or wonderful.

But remember what I said in the beginning. You are not one or the other. You have both the Architect and the rash driver inside you, just as every human being has the capacity for love and hate.

 So, which one is going to determine your results: the Architect or the rash driver? Only you can answer this question – ‘The one that wins will be the one that you choose to feed.’”

So the answer is with you. And the First step is to recognize that you have both the Architect and the rash driver inside you.

Then you need to choose which one to feed – whether it is the Architect or the rash driver.

You can only feed one of it and the other one will starve and die slowly. So make the decision.

And lastly, you need to be mindful of this daily. This is extremely important than a strategy or the mechanics of trading. Because even a good strategy will do you no good if you feed the rash driver.

For more details and examples, checkout the video: