The Definition of Insanity!

According to Einstein, it’s doing the same thing over and over again expecting different results.

That’s a great sound bite, but as traders how do we balance dogged persistence with quitting at the first signs of struggle? Because surely, if we take Einstein at face value, we shouldn’t do anything that hasn’t worked before! One stop out and we don’t trade that setup again…

Not sensible. In trading, we have to take a larger sample size before we start meddling with things. There’s such a random element to the market, we need to let the edge play out over time.

But that’s not to say at some point we shouldn’t switch things up a little. If something hasn’t worked for a long time, perhaps “pushing through” isn’t the right answer.

Today, think about stepping back and objectively auditing your recent trading performance. Which aspects are just not working and what changes can you make to try something different?

It’s often the case that small course corrections can make a significant impact on your trading success. However, we often get so caught up in trying to push through obstacles that we forget to consider the possibility of sidestepping them. By staying open to new ideas and being willing to make adjustments, traders can avoid getting stuck in unproductive patterns and achieve greater success.