People in baseball and the financial markets operate with beliefs and biases. To the extent you can eliminate both and replace them with data, you gain a clear advantage.
Are they working?
It used to be that when my trades weren’t working I’d hide my head in the sand and pretend they didn’t exist.
You know what I’m talking about.
You go for weeks without looking at your brokerage account. You ignore all news against the position you are in. You refuse to look at a chart of your trade.
Until finally, the pain becomes too great and you close out for a much bigger loss than you intended.
Yep, I’ve been there. I’ve been there a lot.
How about you?
Well, if you find yourself doing this a lot, I have a quick fix for you that will solve all of your denial problems in an instant.
Pull up your trading account and then pull up a chart of every trade you are in and ask yourself this:
If I wasn’t in this trade right now…
- Would I wish I was?
- Would I still take an entry?
If the answer is “no” to either of those questions– then maybe you need to close the trade. Staying present with our trades isn’t that easy. In fact, it’s very hard.
But it’s definitely worthwhile.