How to Find
Your Trading Tendency
* How you trade after you’ve made
money versus after you’ve lost money: Do you trade more?
Larger? Do you trade differently based on recent P/L? Do you become
risk averse after recent losses? Does that affect your future P/L?
* How do you trade when you’re taking more risk
versus less risk? Does different size/risk exposure cause you to trade
differently? Are you actually making more money when you’re taking more
risk?
* What kinds of markets and market patterns provide
you with your greatest profits? Losses? Do you trade selectively to
maximize your best opportunities? Do you overtrade markets that are not
ones providing you with opportunities?
* What is your ratio of winning to losing
trades? What is the ratio of the size of average winners to the size of
average losers? How successful have you been in finding large
winners? In preventing large losers?
Many times, our greatest biases and psychological
mistakes come through when we thoroughly review performance. The decision
to not review performance is perhaps traders’ greatest bias blind spot.
All above points are too much important for success in trading.
One must contemplate and get answers to all the questions above and find reasons as well and take necessary steps to improve.
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Good Post about the to learn different investment strategy that help an investor to work according to managed risk appetite.
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