One goal. One Step.: Developing Process Loops Part 1

Saturday, February 11, 2012

Developing Process Loops Part 1

In its simplest form, a process loop is a set of instructions or a task broken down into units to be completed. One of the earliest process loops I recall learning was putting together a puzzle: Find all the edges and separate them. Find all the the like colors and divide them. Build out the frame. Piece together the like colors and build from the fame inward. In theory a trading process should be just as simple.

Although trading is akin to solving a puzzle, in the initial stages of learning there are no easily identifiable edge pieces and the color tends to be varying shades of gray. What I began to realize early on in developing a process was that I was suffering information overload and didn't have the ability to discern what was useful from what was not. It was further complicated because I had not yet developed my trading persona, so my loop consisted of things I thought I should be doing and it was quickly evident there were severe efficiency issues to tackle. This is not going to be an uncommon plight as there are hundreds of nuances in developing a trading methodology and setups that can be explored. I was feeling stuck and I was spinning my wheels. This is a huge problem as it hindered the overall development and progress of my trading because I wasn't focusing on the pertinent issues.

The irony is that a process loop's intent is to resolve efficiency issues and make task automatic –not unlike breathing. However, I began to realize that there were severe difficulties I needed to address in a number of areas and not knowing which direction to proceed I realized I needed to build a process loop in order to design a process loop. Thus began my quest to understand as thoroughly as possible how to design a process loop that would assist me and keep me focused on important tasks at hand even though I did not have full understanding of what I was trying to achieve in the first place.

For this I received a helpful suggestion from a StockBee member to look at Mind Maps. Mind Maps is a technique to visualize information and process flows using images. One of the advantages of using this technique is that through images and color a process flow stands out much more sharply then if it were merely typed up document in a monotone color. Certain flows stand out much more clearly when perusing notes.

Additionally by using a more whole-thinking (for lack of a better term) and using multiple parts of the brain along with physically writing down words and drawings, mind maps become more meaningful. The use of images along can speak volumes about what is being expressed and trying to be understood. By using personal imagery my notes took on a personality that conversed with me.

As an example, here are two of the maps I made in trying to clarify a process loop I was trying to develop. I'm not exactly the most creative when it comes to my doodles but through this process I opened up avenues of creativity I would not have normally explored and I had to get over my ego during this exercise and simply draw no matter how goofy I thought my pictures were. This was a second valuable lesson I received from this exercise that I was not expecting.