The OLIAD Principle
What is the OLIAD principle?
This is something I recently devised that I believe is inherent in any successful endeavour (whether it be trading or something non-trading).
But before I begin let’s look at a chart (fancy me creating a chart!) to help illustrate what the basic elements are of those things that make up the OLIAD principle:
Now allow me to explain the elements individually…
OBSERVE
Whenever we begin anything we start as observers. Like window shoppers we are on the outside looking in.
LEARN
When our interest becomes piqued in our endeavour we start our journey by educating ourselves on the processes, participants, and boundaries (rules) on how we ourselves can become involved.
INTERACT
After observing and learning we take steps to interact in our endeavour. And we know from constant blasting on this site that when trading we know we always need to start small. Why? Well, as we’re likely to make the largest amount of mistakes when we start we minimise the effect of these errors we start small.
ANALYSE
We then analyse our results and find ways of improving our interactions/results.
DECIDE
After participating in our endeavour we need to decide whether to pursue our interest in it at the level we have been or whether to cut back – this might be capital or time. We now look from the inside out.
Ok, so what does all this mean for traders?
Well, I’m going to cover that next. For now, stew over it and see what you think it means for us as traders.
Also think about the circles looping around the Learn -> Interact and Interact -> Analyse areas. What makes these two circles different (besides the colour)?
Tags: Forex Trading
February 14th, 2006 at 5:33 pm
[...] Currency Secrets « The OLIAD Principle [...]
June 2nd, 2006 at 11:39 pm
[...] In many ways I saw the OLIAD Principle that I discussed several months ago with you all. [...]