Resolving Trading Problems

Trader's Mindset

Apr 20

Toward developing greater trading experience, it is very important that traders identify and resolve their trading problems.

The stages for resolving a trading problem compromise of a few stages:

  1. Unaware to semi-aware. At this stage, we are not fully aware of the problem. Proper trade review and statistical tracking may help to identify problems.
  2. Awareness. We become aware of the problem. Often problems are result of cognitive biases, technological limitations, or due to gaps in understanding.
  3. Analysis. We seriously study the problem and derive solutions.
  4. Solve. We implement the solution.
  5. Monitor & Review. We monitor and review the solution for effectiveness and repeat process as needed.

Many trading problems that fester are the result of getting stuck at stages 2 or 3. But, stage 4 is where all the hard work pays off: so stage 4 is where we really have to get too.

A suggestion for the week. Pick one trading problem, do a really deep analysis, and then actually implement your ideas. Finally, monitor and review to become aware of how it improves your trading.




About the Author

The author is passionate about markets. He has developed top ranked futures strategies. His core focus is (1) applying machine learning and developing systematic strategies, and (2) solving the toughest problems of discretionary trading by applying quantitative tools, machine learning, and performance discipline. You can contact the author at