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:
- 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.
- Awareness. We become aware of the problem. Often problems are result of cognitive biases, technological limitations, or due to gaps in understanding.
- Analysis. We seriously study the problem and derive solutions.
- Solve. We implement the solution.
- 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.