6 trading hats

in his iconic masterpiece
"six thinking hats"

edward de bono had suggested
that mind needs to play
atleast 6 different roles
at different times
to effectively manage anything.

he emphasizes that all types of situations in front of us
can be braoadly classified into 6 types
and all these types of situations
need different response from us.

unfortuantely
we deal with all types of situations
with same mindset.

result?
wrong results
in atleast 5 out of 6 times!

he anticipated
that adjusting mindset to changing situations
is easier said than done.

to make it easier
he suggested
that one may imagine wearing
a different coloured hat
symbolising a particular different mindset.

he picked 6 colours

white = neutral, objective.
red = emotions, anger
black = serious, somber
yellow = sunny, positive
green = growth, fertility
blue = cool, sky

based on these colours
he suggested 6 coloured hats!

i found these perfect for trading also.

my adaptation of the same is given below:

-

1. the white (trading) hat
(for gathering information and facts)
= just watching, collecting fatcs, absorbing and understanding what's happening; checking indicators; the ground work without bias, prejudice or preconceptions.

2. the yellow (trading) hat
(symbolizing exploring and probing, looking for and analysing available facts and figures)
= translating the facts, figures and technicals, letting them speak fearlessly without any pressure or bias!

3. the black (trading) hat
(symbolizing the judgment as to why something may not work, spotting threats, dangers and difficulties)
problem if overused.
= looking at the possible traps, gaps and overlooks. challenging the analysis. considering the "what if" scenario

4. the red (trading) hat
(to search for and welcome any intuition, emotions and feelings; no justification required at the moment)
= stopping the logic and listening to your trained gut!

5. the green (trading) hat
(for ideas, creativity, exploring possibilities, letting the thought take you where it wants to)
= double checking, looking deeper and further

6. the blue (trading) hat
(to think and control)
= executing the decision and strategy ruthlessly and without emotions till its time to wear white trading hat again!