Dealing With Setbacks in 2022
Is 2022 going to set you back or set you up moving forward? Dealing with challenges this year has never been more important as we head into the third year of the pandemic. Here’s how professional trader and business owner of 29 years, Andrew Baxter, recommends tackling setbacks head on:
Recognise the Problem
Let’s face it – life throws a multitude of challenges at us each and every day. The difference between being successful and being frustrated, says host Andrew Baxter, is the ability to be honest with yourself and be nimble. Very rarely do we achieve our goals with smooth sailing; therefore, it is important that as we come across setbacks upon our pursuit to be better this year to recognise the problems as they occur. State the obvious, be bone honest with yourself and undertake some hardcore self-examination if you find a discrepancy between where you are and where you would like to be. This kind of biometric feedback loop is what Andrew says will help you develop the process required to get back on track.
When a Trade Goes Wrong
Having a trade go against is you is one of the best proxies for life given it’s always going to be you vs. you. When it comes to the stock market, Andrew has spent the last 29 years or so earning a living from making trades. In that time, like every other investor, he’s had trades go against him and has had to redefine his process to fix the flaw. If you’re an investor reading this insert – when a trade goes wrong, the first step is to identify whether or not it was in or out of your control. A random market announcement that no one knew was coming, subsequently causing the share price to tank, is not your fault to which you have to move on from swiftly.
However, if you find your results to be different to what you expected – most likely it is because you haven’t followed a plan. The trick here is to be bone honest with yourself. If you did something incorrectly, didn’t follow your trading plan or made an oversight on something you shouldn’t have – admit it and get onto fixing it for next time so it doesn’t happen again.
When You’re Off-Track Achieving a Goal
Anyone who does any kind of self-analysis will know that at times throughout the year, we can find ourselves completely off-track from a goal we’re trying to achieve. A current and anecdotal example of Andrew’s was his goal for health and fitness. With some relatively audacious results in mind and a workout schedule to get there, he unfortunately fell victim to the Corona Virus (like the rest of us!) and so was unable to train towards his aim. Left in a frustrated situation where his red brain took over, it was imperative to slow down and see the opportunity for what it was – a gift. The gift of time alone in isolation to refocus and crack into some work meant that Andrew ignited what we refer to as the blue brain.
If you find yourself off-track – stay in control and think about your plan objectively (stay in the blue brain). This way, you’ll find yourself much more easily developing a recovery plan with a much clearer mind. Reframing things from being a problem to an opportunity will only set you forwards, not backwards.
Drills to Deal with Setbacks
Although it sounds quite militant to be talking about drills to deal with setbacks, being hardcore and objective is ultimately what will take you well beyond your most audacious goals. Andrew recommends firstly having a regular review. In his Money and Investing planning journal, Andrew reviews his performance weekly in minute detail and couples this with an overarching quarterly recap. What worked well? What didn’t? These are questions you should be asking yourself all the time to get the most out of a self-examination. Secondly – understand the red/blue brain paradox.
Being self-aware and in the cool, objective, and analytical blue brain will allow you to recognise the cause of issues much easier, but more importantly help you devise a plan to move forwards beyond them. Lastly – start journaling. Getting your thoughts onto paper can help digest them easier and organise your plan of attack thereafter. This sounds basic but trust us – sticking to the world class basics works every time.