Know Thyself is one of the most important attributes to master (which is ongoing process) in order to successfully navigate capital markets. The term know thyself stems from ancient Greece. The Ancient Greek aphorism “Know thyself”, Greek: γνῶθι σεαυτόν gnōthi seauton was inscribed in the pronaos (forecourt) of the Temple of Apollo at Delphi. In Latin, the aphorism is generally given as nosce te ipsum. The Latin version of the aphorism is written on a plaque above the Oracle’s door in the Matrix film series, where it is rendered in a non-traditional Latin; that is to say temet nosce (“thine own self thou must know”) translated in the Matrix as know thyself.
One of the most effective ways to remain objective is to review your actual buy and sell decisions in the market on a regular basis. Great traders throughout history have all learned from their mistakes and so should anyone who is serious about improving their operations in the market. This highly effective strategy is known as post-analysis. It is the simple process of reviewing your trading history on a regular basis.
The process is simple and can be broken down into the following steps:
Every time you make a decision to buy or sell a stock- print out a chart and write down all the reasons why you are making that decision and what your exit strategy is.
When it comes time to sell (for a gain or a loss), repeat the process. Print out a chart and write down all the reasons why you are selling. Then keep two folders one: “Winners” and the other “Losers.” Then put all the winning trades in the
Keep two folders one: “Winners” and the other “Losers”. Then put all the winning trades in the winners folder and all the loser trades in the losers folder.
At the end of every month, quarter, and year, go back and review all the contents of both folders. You’ll be surprised at what you will learn!