Process over Outcomes

Process over Outcomes

I’ve been pretty tough on left brain thinking so far. It is only because It’s so prevalent in the market place. Especially with the quants who think they can mechanically construct some algorithm that will manage their risk and do their thinking for them. However if everyone lived in the right side of their brain nothing much would get done. We would all just be floating around all over the place. So it’s really more about balance and utilizing both the left and the right sides of your head, making them more of a team rather than adversaries. Focusing on a investing process is more of a left brain function.

Every great athlete knows that to have a great performance they have to break down the mechanics of the body’s movement that produce the result they want to achieve. Likewise the investor should have an investing process he goes through based on his investment philosophy. Concerning yourself with the result is putting your attention on a future event. As soon as you do that the Ego, will be involved and start to mess things up. You will start to tense up and worry about achieving the result you want. Instead try to set up a process you go through and execute that process in the present. In other words be present here in the actual moment. What happens in the future is the result of the thoughts you are having at the present moment in time.

Your own investment process will develop over time as you gain more experience in the markets and learn the hard lessons of the mistakes you have made in the past. It will be a personal thing to each and every investor. Something he has come up with based on his own experience. The important thing to keep in mind is not to concern yourself with the future outcome as that is beyond your control. Just execute in the present knowing that if you follow your process the future will look after itself.