Complacency and getting better as a trader

[tomorton]

Keep a trade journal and go back over all your trades - winners and losers. Go back over the charts and review the trades you didn't take.

If you're consistently successful already, focus on getting better at what you're doing right. If what you're right is the majority of what you do, getting 10% better at that is better value than getting 10% less stuff wrong.

 

[lawrence-lugar]

Becoming better at something requires you to find your weaknesses/mistakes and overcome them.

Many people are blind and oblivious to their flaws and weaknesses. -- or are simply too dumb, and/or lazy, or not motivated enough.

There's comfort and safety in complacency. Alot of people are happy or content with being in that stage.
To do something grand, or that requires change, is not easy.

A good or great trader should be very introspective. That will partially answer your question on how to get better.

 

[VincentvanG]

How do you guys improve as traders and prevent complacency?



But as I became a better trader I have become almost complacent to my p/l. Almost happy with being average. You get somewhat comfortable. When I first started trading I had no other choice to get better or I would become broke.

How does one keep improving? How do you guys keep getting better and better every day?

Take care
apo

Complacency is not returning at least 150% on your 5,6,7 figure live account year to date.

 

[apo99]

Greed is the best motivator for getting better and a great destroyer of accounts.
Look for other edges constantly, look for other instruments for your working strategies, test everything.
If too much time is spent on mundane tasks then you need to automate.

Thanks, I am, that's what im doing, it can only work in the Australian exchange since it is so similar to the tsx venture exchange. I Wish I could automate this, but it doesn't seem feasible at the present time

 

[apo99]

Two thoughts:
1) Sitting: If you're going to be a professional trader, you're going to have to bring a solid work ethic to the table. So, what happens when things start working? When things start behaving as you think they should? ACK! Nothing to do!! One of the most difficult things to learn is to not over-trade, not force a trade, or as I glued it into my head: SIT ON HANDS. It is very hard for a good trader (one with a work ethic) to S.O.H.. But clue: If you give it a stupid name (like, "S.O.H. Angst" it will be easier. It has an identity.)

2) Broadening: While I agree with the idea of sticking to your particular product/technique in order to shine, shine, shine, there is also the idea of "always having another [and fundamentally different] iron in the fire" because as qxr1011 wrote, "at some point in the future your method will stop working and that will be the necessary kick in the butt (necessity is a mother of the invention) that will push you to improve the method (also, not necessarily you will be able to do that)."

I used to scalp equities, then ES ticks, then did some index credit spreads (at a time when you could mill 2% from the market week after week, and vol<11 or 12 was a headline-maker).
As I got better, and the market got tougher, I had to "invent" trades to deal with shit vol. -- my thoughts went from positions to the entire inventory -- then to inventory (portfolio) management, then back to trading statistics almost like for scalping, then a really *detailed* study of the sold Risk Acceptance of the credit spread against the Premium Received of the reward end of things....... This past summer, I ironed out conditions for *me* to actually BUY some long positions via calendars. But that's what week after week, month after month, of sub-10 VIX, or even-and-by-Gawd, sub-8 VXST, and the *laughable* effort to even pull 1% from the market each week, will do to you.

Always be a learnin'.
Always be prepared to recognize when *not* to trade, and be willing to recognize Your Inner Trading Awesomeness, and SIT ON YOUR DAMN HANDS.
And Please! don't ever force a trade.
"Capital Preservation" over all else.

Thanks Tom, I don't think its a lack of worth ethic here, I have been doing this for 5years and it has been working for 5 years, I just need to improve day in and day out and get better, find ways to be 5% more efficient, reduce user errors, reduce emotional errors, reduce typing errors and also focus on getting better and increasing my return every year. I think your right in saying you must always keep learning.

 

[traider]

Thanks Tom, I don't think its a lack of worth ethic here, I have been doing this for 5years and it has been working for 5 years, I just need to improve day in and day out and get better, find ways to be 5% more efficient, reduce user errors, reduce emotional errors, reduce typing errors and also focus on getting better and increasing my return every year. I think your right in saying you must always keep learning.

Trading has so much randomness built in. It's flawed to think that you can only improve when doing something that is has so much randomness. The only way is to really understand where you have an edge and place as many bets to exploit the edge which is why you should try to find other edges than just relying on something that you believe works. Emotional errors can be controlled by size and consistency. You achieve better consistency through the law of large numbers.

 

[apo99]

Keep a trade journal and go back over all your trades - winners and losers. Go back over the charts and review the trades you didn't take.

If you're consistently successful already, focus on getting better at what you're doing right. If what you're right is the majority of what you do, getting 10% better at that is better value than getting 10% less stuff wrong.

Thank you makes a lot of sense ,All my trades are perfectly logged and I review my trades daily and weekly. The biggest problem for me now is liquidity after 1m$ you can deploy this strategy in the venture exchange.

 

[apo99]

Many people are blind and oblivious to their flaws and weaknesses. -- or are simply too dumb, and/or lazy, or not motivated enough.

There's comfort and safety in complacency. Alot of people are happy or content with being in that stage.
To do something grand, or that requires change, is not easy.

A good or great trader should be very introspective. That will partially answer your question on how to get better.

Yes change is not easy but its necessary for growth, I had to find a way to change when I first started because I wouldn't stop losing money. Me becoming a better trader was a fuelled by the NEED to change not the WANT.

 

[apo99]

Trading has so much randomness built in. It's flawed to think that you can only improve when doing something that is has so much randomness. The only way is to really understand where you have an edge and place as many bets to exploit the edge which is why you should try to find other edges than just relying on something that you believe works. Emotional errors can be controlled by size and consistency. You achieve better consistency through the law of large numbers.

Thanks, that's exactly what im doing. But finding other similar edges is easier said then done.

 

[apo99]

I think I have done well in certain aspects, Scaling up, getting a bit of outside money, developing my own strategy which is very different to many others, but I can improve in automation, programing, and doing less "office work" so I can focus on trading more