Thriving as a Broker...
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Here you will find article written by DWA whether inspirational, educational or informational as well as articles written throughout the industry.
DWA structured this site to give brokers and investors information to compete in the information age. Whether you are a professional investment advisor or not, you will find goodies here to boost your confidence and sharpen your skills.
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Current Articles:
Forget soccer, Britons aim to score with shares
Internet Is a Gold Mine of Free Information for Plan Investors
After-hours volumes rising
A billion seven and the online brokers
Day-Trading Casualty Stays in Media Spotlight
Web Portals Opening Doors to Asian Market
Aspring Stockbrokers Turn the Internet to Their Advantage
Holiday shoppers might be Scrooges
The hang-ups of money show callers
There is also a Featured Article for the day.
Today's article:
“THE ART OF WINNING”--HOW FAILURE TEACHES US
To go along with the article on becoming world class in Monday's report, I thought these thoughts on “The Art of Winning” would be a good adjunct. The story of Thomas Edison's life is a prime example of the American Dream. Without question, he was a giant among men. He saw light when others saw darkness. During his lifetime he patented a record 1,093 inventions. His inventions literally revolutionized the world. He was truly one of the greatest minds in history. Like all men, however, Edison knew failure. In fact, he failed quite a bit. But like all great men, Edison looked at failure as a learning experience. An experience that would help him grow and develop. His son Charles Edison wrote about his father: “It is sometimes asked, Didn't he ever fail? The answer is yes.” Thomas Edison knew failure frequently. His first patent, when he was all but penniless, was for an electric vote-recorder, but maneuver-minded legislators refused to buy it. Once he had his entire fortune tied up in machinery for a magnetic separation device for low-grade iron ore only to have it made obsolete and uneconomic by the opening of the rich Mesabi Range. But he never hesitated out of fear of failure. “Shucks,” he told a discouraged co-worker during one trying series of experiments. “We haven't failed. We now know a thousand things that won't work, so we're that much closer to finding what will.”
I had to fail many times as a broker to finally find my way. I didn't know how to become excellent at this business. I always thought the key was simply doing what my wonderful firm told me to do and if I lost money for a client it was the analyst's fault. It wasn't until I was given the opportunity and responsibility to develop and manage Wheat First Securities first Options Strategy Department that I came to the realization that the key to success resided within me and nowhere else. I had to become the one responsible for my recommendations and research and no one else. There was no passing the buck, the buck stopped with me. It's amazing how fast you find your way when you finally accept that success or failure is on your own shoulders and no one else's. That is the point when the Point & Figure Method came to light for me. Before that, I found every way one could fail in this business, and some ways you can't imagine, I found them. I never failed at the production side of the equation but I did when it came to profitability of my clients. When I accepted responsibility for my success or failure, the path changed and I began to experience far more success than failure. Following a fire which destroyed his whole laboratory, Edison said, “You can always make capital out of disaster. We've just cleaned out a bunch of old rubbish. We'll build bigger and better on the ruins.” It's obvious that Edison's setbacks were not viewed by him as a hindrance. Have you lost money for clients and failed to learn from that mistake or have you taken the time to evaluate just what went wrong and took steps to correct it? If you learn from your mistakes, you become a much better broker. If you blame the fundamental analyst for the stock going down, you are not taking responsibility. Conversely, if the stock does well, it's also your call.
“At 5:30 the next morning, with the fire barely under control, he called his employees together and announced he was rebuilding. One man was told to lease all the machine shops in the area. Another, to obtain a wrecking crane from the Erie Railroad. Then ‘Oh by the way. Anybody know where we can get some money?'” Nineteen Hundred and Ninety Nine is coming up in a month. Do you need to begin planning now to restructure your business? Do you need to rebuild the relationships that might have been lost riding this last decline in the market down? Are you going to simply begin another year on the wrong foot? Maybe there is nothing that needs to be done, but if there is, get on it now!
Failure teaches us. Or to quote Ben Franklin, ‘Those things that hurt, instruct.” If we get burned, we learn not to play with matches. If we make a mistake, we learn not to do it again. Nobody can avoid failure all the time. Especially in the brokerage business. It's a part of our life. It's how we deal with the failure we ultimately must face from time to time in this business that determines how good you will be as a broker. If you continue to make the same mistakes over and over again you are doomed to ultimate failure. This is why it is always important to actually write down why you buy a particular stock. If it turns out to be the wrong decision you can easily go back and evaluate just what went wrong. As you learn from your mistakes your confidence will rise. Losing is more instructive and informational than winning. For instance, research has revealed that athletes have a greater tendency to analyze their performances when they lose than when they win. Of course, when an athlete's performance is analyzed, mistakes are brought to the forefront to be examined and corrected. In fact, Watson might try having his golf swing analyzed so someday so in his lifetime he might experience a reduction in his score. Terry Bradshaw, two-time Super Bowl MVP and Hall of Famer of the Pittsburgh Steelers, once said “failure is the most critical element to success. I don't know of a single athlete who's achieved greatness who hasn't tasted defeat. Until you're beaten, victory has no meaning.”
If your stock picks or portfolio management results fall short of success don't blame others like I mentioned above. Take full responsibility for your behavior. A person who takes total responsibility for his shortcomings is usually admired. Don't just accept your mistakes though, learn from them. Analyze why you failed. I never did this when I was a broker. Analyze why you failed in your investment performance. Determine what you've done wrong then go about making adjustments to enhance your performance. Remember, success is simply the manipulation of error. Also, remember that everyone fails in this business at some point or another. It's part of being human. I have talked to many brokers who just couldn't get it right. They were on the verge of getting out of the business. Until they analyzed what was going wrong in their stock management process and finally got it right. In many cases it's simply beginning to embrace technical analysis along with their already good fundamental research. Stop, think, evaluate, & make adjustments. You can be great. And above all rejoice in your “humanness”! |
