Monday, July 27, 2009

Evaluating Yourself as a Trader

Here I've shortened and republished ten items for self-evaluation:

1) What is the quality of your self-talk while trading?

2) What work do you do on yourself and your trading while the market is closed?

3) How would your trading profit/loss profile change if you eliminated a few days where you lacked proper risk control?

4) Does the size of your positions reflect the opportunity you see in the market?

5) Are trading losses often followed by further trading losses due to frustration?

6) Do you cut winning trades short because, deep inside, you don't think you'll be able to achieve large profits?

7) Is trading making you happy, proud, fulfilled, and content, or does it more often leave you feeling unhappy, guilty, frustrated, and dissatisfied?

8) Are you making trades because the market is giving you opportunity, or are you placing trades to fulfill needs--for excitement, self-esteem, recognition--that aren't being met in the rest of your life?

9) Are you seeking returns that are realistic given your level of experience and development?

10) Can you identify the specific edges you possess over the many other motivated, interested traders that fail to achieve success in the markets?

Many answers to trading problems begin by asking the right questions.


Maxy said...

Help me understand number 4. In what context are you referring to position sizing and opportunity?
Thank you

Charles said...

Doc, been following you for almost 18 months(about the length of my trading career), and just from my perspective, this is one of the most profound posts you have written. Why is this? Well, because it makes me THINK about the realities of this biz and my place in it.

Dr. Brett, you're awesome my man!
AND, your content gets better and better. As Abraham Maslow might say, you're self-actualizing.

Thanks so much for continually serving up delicious food for thought.


My Trading Edge said...

Hi Brett,

What is your observation of what successful traders do in the following scenario.....
I trade on behalf of clients, so I have a clear idea of what an acceptable profit-per-day target is.
Quite often, I can achieve above this in just a few my question is do I simply stop trading?.... Based on my own trading I am likely to have drawdowns after this period, but still can trade for the remainder of the day to improve the overall profit for the day. My reservation about stopping trading is that trading is a numbers game and I therefore reduce the sample....your thoughts? thanks Adam

J B said...

such a great post dr. ..i keep reading this one and sharing it over and over.