DOFPIC; A Framework for Traders
In order to perpetuate success, DOFPIC provides an environment within which each person can tailor a trading system to address their unique personal characteristics. Developed by the later Dr. J.D. Smith, it will not issue institutional advice that will accrue to a small fortune. It will not offer a trading platform upon which to transact business. It is a way of life to a trader; a garment that imbues a trader with internal legitimacy.
Trading processes must have a clear mandate to achieve specific objectives. The manner on which these objectives are reached needs to suffer revision on a regular basis to ensure optimal efficiency in a dynamic marketplace. A macro view of the trading process needs to be intimately familiar. The more transitions within a trading process, the more discretion is exercised and therefore, the more opportunity for contamination from external sources. The flow of market information into the process is imperative; a trader is not an island however, it needs to be processed into decisions and then to action. Any action needs to be calculated and unequivocal, with absolute autonomy being retained over the result of all trading. When alterations need to be made, they are to be affected without any interference.
With 80% of all trading orders estimated to be stop loss orders, the market is clearly bereft with emotional imbalances. If a sound trading process is executed with Discipline, an advantage will naturally accrue.
Every commercial enterprise has its own housekeeping agenda, and traders need to be Organized. Trading reports need to be recorded and verified, account balances need to be evaluated, and risk management needs to be exercised in a structured fashion.
Undivided attention transports a trader from a generalist to a specialist; a trader needs to Focus.
Closely related to discipline, Patience must be exercised vigilantly so that strict criteria are met before action is taken.
Advice from other market participants is cheap. Independence of thought is more important than market participation itself.
Due to the presence of the framework, Confidence can be derived to deflect indecision and uncertainty.
The above elements of the framework cannot be defined
absolutely, as they depend on the shape of the framework itself for their
character.
The DOFPIC framework will house the most demanding of trading systems. While establishing a core from which a trader can gain their identity, it offers nourishment when suffering the slings and arrows of outrageous fortune, and a steadying rod for when sails are billowing out of control in the wind. Within its folds is a holistic view, and it is in such a secure environment that the talented become great.


What does DOFPIC stand for?
DOFPIC stands for
Discipline
Organized
Focus
Patience
Independence
Confidence
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