In our initiative called Trading Buddy, we planned to meet traders in person.
I had the opportunity to meet 50+ traders in this prog. It was a wonderful discussion, and even I gained a great deal of insight.
Some key points that I observed: (1/10)
I had the opportunity to meet 50+ traders in this prog. It was a wonderful discussion, and even I gained a great deal of insight.
Some key points that I observed: (1/10)
It was expected that people would begin to discuss the issues. However, the process of opening up took some time.
Jumping to conclusions too quickly is a big problem. More problems result from a lack of problem analysis.
Jumping to conclusions too quickly is a big problem. More problems result from a lack of problem analysis.
As an example, a strategy for a trader was performing well but was subject to whipsaws during a particular period. He was worried.
The nature of the strategy and why it behaved differently during that period were not fully understood. An unidentified problem cannot be solved.
The nature of the strategy and why it behaved differently during that period were not fully understood. An unidentified problem cannot be solved.
Everyone was convinced that strategies borrowed from others did not work for them.
Trading in order to recover a loss is a major concern. It often results in revenge trading or emotional trading.
Trading in order to recover a loss is a major concern. It often results in revenge trading or emotional trading.
Everyone is aware of the trade plan and the trading journal, but they are difficult to maintain. If you do, you have an edge.
It is not easy to adhere to a single system for most of the traders. However, it is not always necessary. Multi-step processes can be designed.
It is not easy to adhere to a single system for most of the traders. However, it is not always necessary. Multi-step processes can be designed.
Allocation and risk management rules can do wonders.
The problem isn't knowledge, it's execution.
The majority of people have strategies, but they do not know if they are heading in the right direction.
The problem isn't knowledge, it's execution.
The majority of people have strategies, but they do not know if they are heading in the right direction.
In most cases, traders were adversely affected by strong biases.
The most common mistake traders make is not analysing their trades. Perhaps they do not wish to revisit losing trades.
The most common mistake traders make is not analysing their trades. Perhaps they do not wish to revisit losing trades.
Past trades provide us with a great deal of insight.
Based on advice, a trader started maintaining a journal and noting when he had lost focus or been distracted while trading. He analysed the output. That convinced him to close his ears & remain focused when executing.
Based on advice, a trader started maintaining a journal and noting when he had lost focus or been distracted while trading. He analysed the output. That convinced him to close his ears & remain focused when executing.
Analysis of trades helped some traders become convinced that their average loss was much higher than their average profit and they must address it.
The search for a perfect exit mechanism leaves people with no specific criteria for exiting trades.
The search for a perfect exit mechanism leaves people with no specific criteria for exiting trades.
Almost no one knew or had any rules regarding allocation. Something that I would consider critical.
There is no one-size-fits-all solution to these problems.
I really enjoyed this experiment & I wish we could do it more often. But I am happy that we took this initiative. <end>
There is no one-size-fits-all solution to these problems.
I really enjoyed this experiment & I wish we could do it more often. But I am happy that we took this initiative. <end>
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