Trader Tip: 5 Signs you are a Stubborn Trader As traders we often look at just the technical side of trading. However, we also should be looking at the phycological aspects of our trading to see if we are falling into any traps. One such phycological attribute, which we would consider generally negative, is stubborness.
Stubborness can be kryptonite for many traders. On a detailed trading basis, this stubbornness can cause individual bad trades, as we fall in love with a position, and won’t let it go when it goes wrong. Then on a broader sense, we may fall in love with a trading strategy that in fact is poor. This latter we see all too often at Blue Point Trading. So are you falling in the trap of being too stubborn? Here are our top 5 signs you are a stubborn trader:
- You blame the “market manipulators” or the broker for a bad trade. For sure if there is an issue in your trading venue, it should be resolved. But this is not why you are not a successful trader. Stubborn traders are generally quite good at making excuses for bad performance.
- You mock others on how stupid they are. The market humbles us all! No matter how experienced you think you are. If you see a cocky trader (or are one) mocking others, you are not only looking at a stubborn trader, most likely a loser trader.
- You stick to the same Trade Plan, with no success. If you have been trading one to three months and are not seeing signs of successful trading AND you are using the same trading strategy (or none at all), you are stubborn.
- You double down or do the same trade after already losing. Do you find yourself getting back in the same trade in the same direction, when the original trade was stopped out? You are fighting the trend and are stubborn!
- You tend to counter trend trade a lot. If you are a trend trader and have more than 50% of your trades trading against the 20 period moving average, you are a stubborn trader. If you are a counter-trend trader, you are a double stubborn trader.
There can be a positive side to stubbornness. I will leave you with a quote from Friedrich Wilhelm Nietzsche (1844 – 1900) to explain this better. He was a German philosopher, cultural critic, and a poet who made the quote, “Many are stubborn in pursuit of the path they have chosen, few in pursuit of the goal.” Once we can recognize where to apply positive stubbornness and eliminate where the negative stubbornness resides, perhaps then we can start this pursuit of the goal of being the successful profitable trader.
Proudly powered by: