Monday, 22 February 2016
1. "The Poor: Work & work."
2. "The Rich: Exploit the poor."
3. "The Soldier: Protects both."
4. "The Tax Payer: Pays for all the three."
5. "The Wanderer: Rests for all the four."
6. "The Drunk: Drinks for all the five."
7. "The Banker: Robs all the six."
8. "The Lawyer: Misleads all the seven."
9. "The Doctor: Kills all the eight."
10. "The Undertaker: Buries all the nine."
11. "The Politician: Lives happily on account of all the ten."Source: https://dilettantee.wordpress.com
Mistakes are not a problem in trading.
The problem is repeated mistakes.
We repeat mistakes when we don't learn.
We don't learn if we don't review and reflect.
We look for the next trade, but fail to thoroughly evaluate the last one.
We don't want to miss the next move, so we miss learning about the last one.
And we repeat mistakes.
For better or worse, we create our trading karma.
“From financial history and from my own experience, I long ago concluded that regression to the mean is the most powerful law in financial physics: Periods of above-average performance are inevitably followed by below-average returns, and bad times inevitably set the stage for surprisingly good performance.” – Jason Zwieg