The Trader's Mindset revisited

The Sultan promised to look at the question of the Trader's Mindest a couple of days ago, and his recent post does just that. Whilst to be perfectly candid I do not recognise myself in his description of a trader losing his rag in a trade and acting rashly, I do identify with the comments about getting to the root cause of a trader's problems and it still vexes me. Whilst it was disappointing to learn that a night out on the ale won't cure the problem, I've no doubt this is true!


I never used to keep records. None. Nada. And people would ask 'what's your strike rate?' or 'what's your ROI / ROC' or, even worse, 'which match odds give the best returns for the (insert name) trading strategy or tactic?'. And, as I couldn't give a straight answer, I'd mumble something like 'it's around x%' and swiftly talk about something else instead.


That has changed (although it is far too much of a fag to keep updating the results sheets on here, so the observant ones amongst you will notice they've now disappeared). Not only have I a detailed spreadsheet on which I record the financial aspects of my trading I have also knocked up a simple database on Access which enables me to record the thought process of the trade (or the lack thereof!).

Having uploaded the above sample (complete with typos ;-)) I've noticed I've not included the bloody event details on the form - what a muppet! Still a work in progress. I try to complete this process either during or soon after a match ends, whilst it's all still fresh in my mind. That isn't too much of an issue with soccer as I can still be trading other games as things generally happen quite sedately but would obviously be a bit more difficult for nag traders to make use of.


I'd be lying if I told you I hadn't deliberately selected a winning trade for my picture - so for those who have an interest in the kind of mindset issues I still have - here's a not so good one... (the handicap of not including the event is going to need to be fixed! I can't for the life of me remember which match this was):-

I wouldn't worry if this kind or trade were a rarity. But it's not. Don't misunderstand - it's not common but it's there in the plural and this I find intensely frustrating. I am hoping that by keeping such records I can ingrain on my pysche that this form of trading is NOT the way forward. It's a beginner's mistake - so why, oh why, oh why do I keep doing it? I'm not necessarily talking about taking the trade on - I'm talking about letting a losing situation run and run and run instead of cutting and running, reinvesting what's left and moving onto other, profitable, trades.


I really do think this is the last real issue left with my trading. I've been doing it long enough now to have formulated a viable strategy which I know works, and am able to spot other low liability / large upside trades along the way to augment my core activities. All that remains to be done is to eliminate the f'g stupid hare brained glorified punts from my trading and I'll be content.


In case anyone is still wondering whether I would ever consider doing this for a living, I would suggest the answer is contained in the above - you shouldn't have to dig too deep.


A SORRY AFFAIR


Some readers will know Robbo, and some will know what has befallen him. For those who don't let's just say that a substantial four figure amount was lifted from his Bf account and frittered away on the arcade site / casino. areas. 


I was sorry to hear about it mate, and know you'll get it back. The rest of us must ensure we safeguard our own accounts with regular password changes etc as, surprise, surprise, there's nothing Bf can do to help.


AND AN UNADULTERATED PLUG


Please download and use the latest edition of A Geek's Toy if you haven't already done so. Anyone trading at all seriously should use software of some sort and this is a strong contender as it is, currently, free. If you're wondering why I feel the need to plug it....well, let's just say it's financially motivated but not by means of affiliate plans! You can find out for yourself if you want to know....