All traders have taken subpar trades. The level of experience doesn’t really matter… and chances are that you’re going to take them again. Mediocre / subpar trades are just one of many things that’s a hindrance to the performance of traders.
What is a Subpar Trade?
A subpar trade (for me) is any trade where you deviate from your strategy… it’s a trade where you don’t follow your rules.
What are the Drawbacks of Taking Subpar Trades?
- If you lose on a mediocre trade, you’re just depleting your trading capital unnecessarily.
- If you win on a mediocre trade, you are reinforcing negative trading behaviors.
- Subpar trades can deplete your emotional capital.
- By the time an A+ trade comes up you might miss it or can’t take it because of negative emotions, your capital might be depleted or your capital might be tied up in mediocre trades. This might just be the worst thing, especially if that trade goes on to be a big winner.
There’s no positives in taking subpar trades.
Finally:
Reducing the number of subpar trades you take can improve your performance drastically. So make sure you have a trading system with clear rules and stick to the system…then track your trades (journaling), improve where you can… then repeat.
Thanks so much for reading. Hope you and you loved ones are doing well.
Thanks and Regards,
Trading SOS SOS