To trade successfully long-term there are some destructive trading beliefs that need to be avoided. In episode 32 of the Trading Performance Podcast, we give you a sneak peek into a class that John was asked to give for one of his students to a trading group called MAP or Maximize Advanced Profits based in Sacramento California that gave 4 common destructive trading beliefs.
Click here or in the video below to learn more about these beliefs.
If you are a PRO, GO, or Trading Performance member, please enjoy the entire 90 minute class on the Bonus page from your member dashboard in the Locke Options Community. If you are not a member yet, it isn’t too late to join, membership enrollment is open until November 1st!
What are the topics of these beliefs?
Consistency is a topic that comes up over and over again. It is a topic that is worth spending time for traders to ask questions like these:
- What does consistency mean to you?
- Over what time period?
- How much and how often?
A trader’s expectations around consistency can create stress and lead to poor performance. It is worth the time to investigate this for yourself.
2. Non-Subjective Trading
A trader is always either trading subjectively based on his beliefs or he is trading with ignorance. Following rules and expecting to win solely based on the past performance is trading with ignorance.
Every trading strategy tells a story that defines its edge as well as its weakness in the marketplace. If a trader understands the trading strategy, he will trade the strategy when his subjective beliefs indicate the edge is likely to be present. So does non-subjective trading really exist or is it just trading with ignorance?
Win probability is only one variable when considering a trading strategy. Utility is much more important than probability! Don’t miss this part!
4. Tweaking The Rules
Trading strategies win over time in the future when the concepts of the strategy align with the marketplace. Period.
The more you “tweak” the rules in back testing, the more you are form fitting the concept to the past. This makes the strategy less likely to perform as expected in the future.
Be sure not to miss this Trading Performance Podcast episode where John exposes the 4 common destructive beliefs that you will want to avoid!