Accepting responsibility for your good and bad trades.

When a trade works really well what do you look at first?  The market or yourself? When a trade doesn’t work what do you look at first?  The market or yourself? Accepting responsibility for both gives you motivation and reminds you of the risks.

Empowers

If you take the focus off of yourself and put it on things you cannot control, it will be hard to do the necessary work to put yourself in a  good situation.  If everything is dependent on something else what is the point of working hard?  If you have ever had a bad job you know what it is like to feel as if you have no control of the outcome.  It is hard to get out of bed and do the extra work. That extra work each day makes a big difference in a year.  Of course you cannot control the market you can only control what you do with the current market.  Many traders socialize their losses and privatize their gains.

Possible to learn

If you do not take responsibility for your trades you will miss the guaranteed return on the trade, the feedback.  Once again, what is the point of learning if it is out of your control.  Having knowledge will do nothing to affect the outcome of your career if you do not take responsibility.  This is also important for a win.

Accepting Risk

There have been many times when I have gotten caught by news or I forgot about an economic release.  In the beginning I blamed the market.  I had not accepted the risk of being in a trade.  What it forced me to do was to pay attention to scheduled releases.  It also made me realize that over time I was going to be on the other side of the news. If you blame the market you are only going to remember the time news costs you money.

It is important to always take responsibility and never ignore the risks of executing a trade.  You are going to eventually have to come to terms with it.  You might as well do it when you still have psychological capital and capital left.

Want to be more than a page view?  Ask us a question live most Wednesday 1ET http://www.ustream.tv/channel/e-mini-executors, send an email or tag your tweet with #eminix.

We would really appreciate your feedback, if you like, hate, or think we are full of crap. Please leave a comment, a voice mail (312) 725-9121, email info @ traderhabits (dot) com or twitterstocktwitsyoutube and facebookSubscribe to Traderhabits by email or to newsletter.

2 Responses to Accepting responsibility for your good and bad trades.

  1. […] Eli: Blame yourself first.  (TraderHabits) […]

  2. Anonymous says:

    “guaranteed return on the trade”.  I like that, going to steal it 🙂

The services and materials provided should not to be interpreted as investment advice, an endorsement of any security, commodity, future, or personal investment advice, or an offer to buy, sell, hold or trade futures, options or commodity interests or a recommendation to buy, sell, hold or trade futures, options or commodity interests. You assume the entire cost and risk of investing and are solely responsible for any and all gains and losses, financial, emotional, or otherwise, experienced, suffered, or incurred by you.

Read previous post:
CME applies haircut and why it doesn’t matter.

The CME Group announced that early Monday they were applying a haircut to bonds.  Lets define haircut and purpose of a bond....

Close