Think Like a Backup By Doug Hirschhorn, PhD

Backup know that when they get the call to come off the bench, they have to be ready, in a moment’s notice, so they can deliver results.

Trading or managing a portfolio in a range bound market is a frustrating and mentally grueling experience (similar to that of being the backup quarterback). These markets can easily cause the best traders to get sloppy, bleed out PnL and lose site of their process.

To deal with this, you have to think like you are the backup quarterback.

Here are some strategies you can put into action

• Avoid complaining or listening to others complain. That type of behavior is destructive. • Be productive with your conversations and thoughts by stating/documenting your observations rather than your opinion. • Become a master student of the game and fill your time by studying it and thinking about it rather than just staring at the screen (field) or worse yet, trading out of boredom, frustration or anger. • Be willing to miss out on that first breakout but also be ready to take action so you don’t end up waiting for over-confirmation and miss the window of opportunity – in other words, you don’t want to still be warming up when the ball is in your hands. • Stay healthy by keeping your sizing right. Your positions should be small enough so that the PnL swings do not keep you up at night worrying...and yet be big enough so that they keep your attention so you don't get complacent. • Recognize when you are becoming complacent or trading out of fear so you avoid putting on trades outside of your core process.

Four examples of some of the best backup QBs in history.

Frank Reich • Had only 20 starts in 13 years in the NFL • In 1993, he got called off the bench in a playoff game vs. the Oilers • He led the Bills to the largest comeback in NFL history by coming back from being down 32-points and winning in overtime

Jeff Hostetler • In 1984, he was the backup quarterback to • For the next six years, he didn’t play much • In 1990, Simms broke his foot and Jeff came off the bench to finish the season • Jeff led the Giants to beat the heavily favored Bills in XXV

Jim Plunkett • winner • Won Rookie of the year in his first season with the Patriots • Next six years didn’t do well and was traded to the Raiders as a backup QB • For the next two years, he barely played • In 1980, starting QB, broke is leg and Jim came off the bench to take over • Jim led the Raiders to win Super Bowl XV • In 1983 he was again called off the bench to take over for Marc Wilson and Jim led the Raiders (a second time) to win Super Bowl XVII

Earl Morrall • Earl was the backup QB to • In 1972, five games into the season, Bob broke his leg • Earl came off the bench and won the next 11 games

© Copyright 2014, Doug Hirschhorn, PhD ALL RIGHTS RESERVED

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