Arbitrary definition: An Idea, behavior or way of thinking that a trader operates from which cause him to misapply his strategy and is counter-productive to his goals and purposes
The difference between targets and deadlines. Targets are set based upon the parameters of a strategy. I.e how many trades you expect to take per month on average, your standard win/loss ratio per trade, Your monetary risk etc. It works within the confines of you strategy and its standard performance, whereas, a deadline is set by the individual regardless of strategy based on an arbitrary desire to achieve a certain result.
Saying that a target is the optimum performance metric of a strategy isn't false but it is inaccurate. Targets are more a default of the results you expect your strategy to produce during normal market conditions.
whereas a deadline is a sort of trap a trader sets up for himself saying that "I want to achieve this by this date" The important part here is the date. For whatever reason whenever I've set a deadline for trading, It seems that the markets (Almost out of spite slow down, stagnate and fake me out) whether this is true or not (or just my own perception) requires more investigation.
A trader who sets a deadline for what he want's to achieve stops working with the market and start working against in an effort to "Take control" of his results and profits.
its this effort to "Take control" which causes a trader to lose his composure and bring upon him anxiety and all the consequences of losses of composure. Its this lose of composure which leads to a trader misapplying his strategy and could rapidly send the trader down the route of having no account.
If you have a specific goal you want to reach in trading there're two better options. one better option would be to increase your standard monetary risk. The other one is changing you tactic or approach, Instead of placing multiple trades be extremely selective and place one trade with a higher monetary risk than normal on the best opportunity present and once that trade starts winning, Scale into the position by adding in more trades.
Trying to enforce a deadline for yourself in trading is the best way to knock yourself out of the game.
The Dwindling Spiral
The dwindling spiral here is one of trying to control something you can't control and where it goes wrong is where your trades or your results start to depart from your expectations. You have a goal with a deadline. You place a trade, maybe it goes slower than expected and the market bogs (Doesn't move) or enters into a period of small-scale consolidation. You become more anxious because your deadline is approaching. You start overcompensating and start making mistakes (Irrational trades, Over-Risked Positions, Re-entry trades).
You could say a trader starts making mistakes when the markets deviates from his expectations.
When this happens you start to fight the markets and fight time. This is always a losing battle.
Picking a fight in the market is a surefire way to stress yourself out and end up disappointment. If that what you like to do then i guess more power to you.
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