Why Traders Spend So Much Time On Trading Mistakes and So Little On Good Trading
Why Traders Spend So Much Time On Trading Mistakes and So Little On Good Trading
This article is inspired by the thoughts of a fellow trader. I will cite her here below:
“Any tips on minimising execution errors? This week I did a terrible job executing. I had a very good week but those errors hunt me…”
My response to that message was the following:
“There will always be errors! Nobody is immune from them! It is all about how you manage them and making sure you don’t let them influence your psyche! Instead of thinking about mistakes think of everything you did right and how you can repeat that and possibly improve it!”
Why Are Traders so Preoccupied by Mistakes
Strangely, but traders are usually asking how they can improve based on the mistakes they are making.
A very few traders that I know are asking themselves about the profitable trades.
Why did they take a certain profitable trade?
How could it’ve been improved…
Where they will need to start looking for patterns that make them money.
Questions that are boring, but essential at the same time are the ones least asked.
It Is All About Asking the Right Questions
Although a very vague statement, it stands right in the centre of my trading strategy and way of thinking.
Are you asking yourselves the right questions?
Do you get enough of good trades and are you analysing them afterwards?
Why ask yourselves constantly on why you have taken this bad trade, while you can optimise your time and ask yourself the question:
How can I repeat this successful trade one more time?
Ten more times… until I become CONSISTENT!
Success equals success
When you are going through a winning streak it feels great! You are on top of your game and exactly at this moment, when your confidence increases to an unprecedented level, your trading results start worsening.
It is only human to be prone to making mistakes.
Beginner traders are not trained to see the market with the same eyes as an experienced trader.
Success equals SUCCESS!
The more profitable you get, the more profitable you want to get. That is where the line of disaster lies.
The line that is so easy to be walked over and so hard to be delineated.
Greed vs. Fear
Greed vs. fear is already an outmoded statement. Did we make this or that mistake because of our greed or fear?
If a question is asked a thousand times it becomes a self-evident truth. The more we ask ourselves (and others) the same questions, the more we will be prone to mistakes.
Why nobody talks about good trading analysis?
How come no one is asking questions related to improving an already stunning performance.
Why there are traders still preoccupied with losing trades so much that they forget what winning is.
Naturally inept to make a difference
Are we naturally inept to make a difference?
Why is it so hard to find a profitable trading system and stick with it?
It is all about the questions that you, as traders, ask yourselves.
I will only ask you one question: When was the last time you analysed a profitable day and asked yourself the question why was I profitable this day and how my day could have been improved?
Good luck with your trading,
Colibri Trader
p.s.
Have you checked my recent analysis on AUDUSD