Work Ethic Effects

[dam5h 10]

i just had a thought about overtrading and revenge trades. it seems that the times that i am most vulnerable to fall into that mess are the times that i am eager to correct a mistake that i have made.

 

in a traditional work/communal environment it is important for one to correct ones mistakes, and pronto if you know what i mean. if effective in this manner much repect can be earned from one's peers.

 

i'm beginning to think that this is yet another way that an ingrained work 'ethic' can be detrimental to one's trading results. just like folks say that a new trader needs to get used to just sitting and waiting rather than actively "working"/trading.

 

i contend that after a poor decision; this wisdom rings even truer.

[snowbird 10]

Agreed,

 

I find this rings true, especially in the case of revenge trades. Personally I also find I need to be cautious of over-trading after several wins (overconfidence).

 

In the case of mistakes, where the desire/ worth ethic is to "fix it", one would be better served documenting what the mistake was as well as what they were "feeling" at the time. (this is hard for me because I hate documentation, obviously know what the mistake was at that time and do not feel good about it).

 

Return to your journal every so often and review to identify patterns of reoccurring emotions affecting your decisions.

 

snowbird

[DugDug 10]

I dont have a problem with revenge trades. I usually just cut and move on, or have no problems saying i am wrong and reversing the trade from long to short say.

I do have a problem though that sometimes creeps in that is directly related to the idea of the work ethic.

This manifests itself in two forms.

One - looking for trades that are not there. not out of boredom, but more out of a thought that you should be working - hence you should be doing something.

This normally occurs when markets are crazily volatile and you really should not be there.

two - sometimes I try to get too much out of a trade. eg; long, make money, and then you look at it and try figure how could I have made more out of it.

 

The only solution I have found is exactly the one suggested. Go back and look at past trading history, and recognise how the PL tracks in the past. It will remind me of what works. Otherwise, sometimes its best just to get up and walk away telling myself - there are always opportunities - if you dont need to be in the market at present, why are you there.